3 (a) Lore Ltd is a company that sells home and office furniture. Details of the company's unsold furniture as at 30 September 2021 are as follows: 2011.1.10 Item No. of units Net realisable Cost per unit value per unit Foldable Sofa Bed 650 1,500 Dining room set 1,300 2.500 Wooden bookcase Computer table 430 310 810 1.800 On 30 September 2021, the company purchased three units of armchair for $800 each. In addition, the company had to pay customs duties of $400 and carriage inwards of $250 to purchase the 3 armchairs. The selling price of the armchair is $2.40 per unit. The estimated cost to make the sale is $500 Required: Worx 372 Determine the value of inventory on 30 September 2021 in accordance with HKAS 2. 2020. N 774 (10 marks) (b) An asset which cost $200,000 on 1 January 2020 is being depreciated on the straight line basis over a five year period with an estimated residual value of $40,000. The company which owns the asset has conducted an impairment review at 31 December 2021 and estimates that the asset will generate the following cash flows over the remainder of its useful life: 2011-12-1 Inflows Outflows Year $000 $000 2022 45 5 4.. 2023 35 5 30. 2024 60 5 55. The cash inflow for 2024 includes the estimated residual value of $40,000. The asset could be sold on 31 December 2021 for $110,000. Disposal costs would be $6,000. Required: Determine the impairment loss, if any, of the asset assuming a discount rate of 8% Discount factors: year 1-0.926; year 2-0.857; year 3-0.794- (10 marks) (Total 20 marks)