# 5 On 1 January 20X0 Multiplex acquired Steamdays, a company that operates a scenic railway along the coast of a popular tourist area. The summarized statement of financial position at fair values of Steamdays on 1 January 20X0, reflecting the terms of the acquisition was: Goodwill Operating license Property train stations and land Rail track and coaches Two steam engines Purchase consideration $'000 200 1,200 300 300 1,000 3,000 The operating license is for ten years. It was renewed on 1 January 20X0 by the transport authority and is stated at the cost of its renewal. The carrying values of the property and rail track and coaches are based on their value in use. The engines are valued at their net selling prices. On 1 February 20X0 the boiler of one of the steam engines exploded, completely destroying the whole engine. Fortunately, no one was injured, but the engine was beyond repair. Due to its age a replacement could not be obtained. Because of the reduced passenger capacity, the estimated value in use of the whole of the business after the accident was assessed at $2m. Passenger numbers after the accident were below expectations even allowing for the reduced capacity. A market research report concluded that tourists were not using the railway because of their fear of a similar accident occurring to the remaining engine. In the light of this the value in use of the business was re-assessed on 31 March 20X0 at $1.8m. On this date Multiplex received an offer of $900,000 in respect of the operating license (it is transferable). The realizable value of the other net assets has not changed significantly. Required Calculate the carrying value of the assets of Steamdays (in Multiplex's consolidated statement of financial position) at 1 February 20X0 and 31 March 20X0 after recognizing the impairment losses