(a) Potter owned a 100% subsidiary, Hogwart that is treated as a cash generating unit. On 31 December 2016, there was an industrial accident (a gas explosion) that caused damage to some of Hogwart's plant. The assets of Hogwart immediately before the accident were: Goodwill Patent Factory building Plant Receivables and cash '000 1,800 1,200 4,000 3,500 1,500 12,000 As a result of the accident, the recoverable amount of the assets held by Hogwart is 6.7 million The explosion destroyed (to the point of no further use) an item of plant that had a carrying amount of 500,000. Hogwart has an open offer from a competitor of 1 million for its patent. The receivables and cash are already stated at their fair values less costs to sell (net realisable values). Requirement: Calculate the carrying amounts of the cash generating unit, Hogwart, at 31 December 2016 after applying any impairment charges. Calculations should be to the nearest 1,000. (7 marks)