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2. Rika Ltd owns a machinery that originally cost $700,000 (useful life of 5 years and no residual value). It has been carried at cost

2. Rika Ltd owns a machinery that originally cost $700,000 (useful life of 5 years and no residual value). It has been carried at cost and depreciated using the straight-line method for 2 years. Knowing that the recoverable amount is $490,000, what will be the journal entry to record impairment testing of the machinery?

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