(a) ABC has a building in Pasir Panjang, which it rents out. It accounts for investment property using the cost model in the year 2019. The building was bought 10 years ago at a cost of RM10 million and the estimated useful life was determined on purchase to be 50 years. Due to ecological changes, the area is prone to floods. The fair value of the building at the end of the current year was RM6 million. The present value of the flow of rental is RM4.2 million, taking a market interest rate of 10%. Required: (i) In your opinion, do you think that the asset is impaired? Justify your answer (7 marks) (ii) In the year 2019, the market interest rate dropped to 3%. What is the effect of the change in interest rate on the carrying amount of the asset? (4 marks) (iii) The interest rate remained at 10% but in the year 2019, the government enlarged the area enclosed by the river and built embankments to stop flooding. Discuss how this action affects the value of the building. (2 marks)