At 30 June 2017, Tony Ltd reported the following cash-generating unit: Land $ 40 000 Plant 240 000 Accumulated depreciation (80 000)* Goodwill 10 000 Accounts receivables 15 000 Inventory 25 000 Cash 5 000 The receivables held by Tony Ltd were all considered to be collectable. The inventory was measured in accordance with AASB 102 Inventories. All items of property, plant and equipment are measured using the cost model. At 30 June 2017, the recoverable amount of the cash-generating unit was $221 000. For the period ending 30 June 2018, the depreciation charge on plant was $11 000. If the plant had not been impaired the charge would have been $16 000. At 30 June 2018, the recoverable amount of the unit was calculated to be $18 600 greater than the carrying amount of the assets of the unit. As a result, Tony Ltd recognized a reversal of the previous year's impairment loss. Reguired: a) Prepare the journal entries relating to impairment at 30 June 2017 and 30 June 2018. (13 Marks) b) Discuss why the standard setter requires companies to test and account for impairment of assets. In your discussion, refer to the two fundamental qualitative characteristics of useful nancial information (relevance and faithful representation) as dened in the Conceptual Framework. (5 marks) Note: You are required to show all workings and round up to the nearest dollar. Narrations are not required