ABC Ltd has a technological asset, AXS which it uses to manufacture computer processing unit (CPU). The carrying amount of AXS after four years usage is $5 million (cost $9 million, accumulated depreciation of $4 million on a straight line basis). There is no expected scrap value. Due to a breakthrough in technology in the manufacture of CPU, ABC Ltd now expects the machine to produce 40% less in revenue terms than expected over the rest of its estimated useful life of 6 years. Net future cash flows for the next six years, based on management's best estimate after taking the 40% reduction into account, are as follows. (All in $000) Year ended Expected growth rate Future cash flow 660 700 730 750 2 3 +4% -5% (Hint: use future cash flow of year 4 and expected growth rate of year 5, to calculate the future cash flow of year 5) If the technological asset was disposed now, it would realize $3.2 million at net realizable value. The discount rate to be applied to the future cash flows is 8% Required Calculate any impairment loss and state the new carrying amount of the AXS. (Detailed calculation steps should be shown, for present value factor, please adopt after 3 decimal places)