a) Telescope acquired an item of plant at a cost of $800 000 on 1 April 2017 that is used to produce and package pharmaceutical pills. The plant had an estimated residual value of $50 000and an estimated life of 5 years, neither of which has changed. Telescope uses straight line depreciation. On 31 March 2019, Telescope was informed by a major customer (who buys products produced by the plant) that it would not be placing orders with Telescope. Even before this information was known, Telescope had been having dilliculty finding work for this plant. It now estimates that the net cash inflows earned from the plant for the next 3 years will be: $ 000 Year ended: 31 March 2020 220 31 March 2021 180 31 March 2022 170 On 31 March 2022. the plant is still expected to be sold for its estimated realizable value. Telescope has confirmed that there is no market, in which to sell the plant at 31 March 2022. Telescope's cost of capital is 10% and the following values should be used: 0.91 Value of Si at: End of year 1 End of year 2 0.83 End of year 3 0.75 b) Telescope owned a 100% subsidiary, Tillia that is treated as a cash generating unit. On 31 March 2019, there was an industrial accident (a gas explosion) that caused damage to some of Tillia's plant. The assets of Tillia immediately before the accident were: $000 Goodwill 1 800 Patent 1 200 Factory building 4 000 Plant 3 500 Receivables and cash 1 500 12 000 As a result of the accident, the recoverable amount of Tillia is $6,7m The explosion destroyed to the point of no further use) an item of plant that had a carrying amount of $500 000. Tillia has an open offer from a competitor of $1m for its patent. The receivable and cash are already stated at their fair value less costs to sell (net realizable value). Required: a) Calculate the carrying amounts of the assets in a) and b) above at 31 March 2019 after applying any impairment losses. (11) b) Explain what is meant by an impairment review. Your answer should include assets that that may form a cash generating unit. (4)