A property was purchased at a cost of $600 000 in 2010. At the end of

2011, the property was revalued to $900 000.

At the beginning of 2013, the carrying amount of the property was $800

000. An impairment review was carried out at the end of 2013 and

the fair value of the property was estimated at $300 000, and its value

in use was calculated at $400 000.

Required

1. Calculate the impairment loss.

2. Prepare journal entries for the revaluation.

3. Briefly explain the accounting treatment of the impairment loss.