ACC236 Question

On 1 July 2017, Barry Smith Bhd. acquired plant and machinery at RM 250,000. It had an expected useful life of 5 years with no residual value. On 30 June 2019, the market value of the machine suffered a significant decline. The company estimated the net selling price was RM 120,000 and the value in use was RM 100,000. On 30 June 2020, due to favorable market condition, the net selling price was estimated to be RM 110,000 and the value in used was estimated to RM 95,000. Barry Smith Bhd. closing its account every 30 June. Required: Explain whether the properties impaired and record the relevant journal entry from 2017 until 2020. (Show all the relevant calculation to support your answer)