Coco Sdn Bhd has a year end of $31$ December and operates a factory which makes

ceramic tiles. It purchased a machine on $1$ July $2020$ for RM$80,000$ which had a

useful life of ten years and is depreciated on the straight$-$line basis, time apportioned

in the years of acquisition and disposal. The machine was revalued to RM$81,000$ on

$1$ July $2021.$ There was no change to its useful life at that date. A fire at the factory

on $1$ October $2023$ damaged the machine leaving it with a lower operating capacity.

The accountant considers that Coco Sdn Bhd will need to recognise an impairment

loss in relation to this damage.

The accountant has ascertained the following information at $1$ October $2023$:

$($i$)$ An equivalent new machine would cost RM$90,000.$

$($ii$)$ The machine could be sold in its current condition for a gross amount

of RM$45,000$ with a dismantling cost of RM$2,000.$

$($iii$)$ In its current condition, the machine could be used for three more years

which gives it value in use of RM$38,685.$

Required:

With respect to MFRS $136,$ Impairments of Assets, calculate the impairment

loss for the machine for the year ended $31$ December $2023.$ Show relevant

workings. $(15$ marks$)$