Example 9: 0n 1 January 20X1 Quest Ltd purchased for E250,000 a machine with an estimated useful life of 20 years and nil residual value. Q Ltd depreciates such machine on a straight-line basis, On 1 January 204 an impairment review showed the machine's recoverable amount to be 120,000 and its remaining useful life to be ten years. Required: (a) Calculate the amounts to be included in the Statement of Profit or Loss for the year ended 31 December 204 (b) Calculate the amounts to be included in the Statement of Profit or Loss for 20X4 if the asset had been revalued on 1 January 203 to 288,000, but with no change in useful life at that date (a) Cost model Carrying amount at 1.1.X4 Impairment loss Recoverable amount at 1.1.X4 Less: Depreciation Carrying amount at 31.12.X4 (b) Revaluation model Carrying amount at 1.1.X3 Revaluation gain Fair value at 1.13 Less: Depreciation for X3 Carrying amount at 1.1.X4 Revaluation loss Recoverable amount at 1.1.X4 Less: Depreciation Carrying amount at 31.12.X4 Working: Revaluation surplus balance Revaluation gain Less: Transfer to RE Depn based on FV Depn based on cost 58