ABC, a public Palestinian company, has determined to follow IAS 36 Asset Impairment. The following data is pertinent to the impairment review: (a) The value of certain pieces of machinery appeared to have been permanently reduced. The inventory created by the machines was being sold at a loss, and this had a negative impact on the value of the productive machinery. These machines have a carrying value of $290,000 at historical cost, and their net selling price is assessed to be $120,000. The machines' net cash inflows are now expected to be $100,000 per year for the next three years. Any present value calculations would use a market discount rate of 10% per year. (b) On January 1, 2018, ABC paid $115,000 to acquire a gas station company. Based on net selling prices, the following were the values of the company's assets at that time: $000 Machines 60 Intangible assets (taxi license) 15 Trade receivables Cash 5 25 Trade payables (10) 95 A piece of machinery was stolen on February 1, 2018. The net selling value of this machinery was $15,000, and it was uninsured due to the failure to disclose specific risks to the insurance provider. As a result of this occurrence, ABC intends to record an impairment loss of $22,500 (inclusive of the loss of the stolen machine) as a result of the fall in the value in use of the cash-generating unit that is the gas station. Required: Explain how ABC should account for the above asset impairment in its financial statement. You should show the impairment loss treatment at 1 February 2018.