The following information is available for a machine owned by Sorano Inc. at 31 December 20X4:

Machine original cost .......................................................    $12 million
Salvage value .....................................................................    $0
Purpose of machine .........................................................    Manufacturing
Remaining useful life ........................................................    5 years
Depreciation method .......................................................    Straight-line
Machine—accumulated depreciation ............................    $3 million
Fair value (obtained from external appraisal) ...............    $8.4 million
Value in use ........................................................................    $8.35 million
Estimated costs of disposal .............................................    $200,000

The following information pertains to the same machine described above at 31 December 20X5:

Fair value (obtained from external appraisal) ............    $8.9 million
Estimated costs of disposal ...........................................    $250,000

Required:

1. Determine whether there is an impairment loss at 31 December 20X4.
2. Calculate depreciation expense for 20X5.
3. Determine whether an impairment reversal should be recorded at 31 December 20X5, and, if so, calculate the amount.