Easy-going company acquired some Plant at a cost of $1.5million. As at 30 June 2014 the plant had accumulateddepreciationof $250 000.On 30 June 2014 it was determined that the plant could be sold for a price of $800 000 and the costs associated with making the sale would be $40 000.The value in use is 738,000.

Required:

Determine whether an impairment loss needs to be recognized in relation to the machinery and, if so, provide the appropriate journal entry.

Note: Provide all the calculations/working out.