At the end of 2020, MercuEmas Bhd estimates the followings relating to the machine:

1) The remaining useful life of the building is 5 years;

2) The cash inflows and outflows from the building will be RM25,000 and RM10,000 respectively per year;

3) The fair value of the building is RM30,000; legal fees RM1,000; stamping fee RM500; and brokerage fee RM500 are expected to be incurred to dispose off the machine and,

4) The market prevailing interest rate is 3 percent.

Required:.

i. Calculate the CA.

ii. Calculate the RA.

iii. Determine the IL if any.

iv. Prepare the necessary journal entries to record the impairment loss if any.

v. Prepare the partial statement of financial position to show the presentation of the machine.