Exercise 2: Impairment of items from cash-generating unit An entity produces a product in a continuous process using three press-machines (ie the output of Machine A is the input (raw material) for Machine B, the output of which is the raw material for Machine C. The output from Machine C is the entity's only marketable product. After recognizing depreciation for the year ended 31 December 20X1 the carrying amount of Machines A, B and Care: Machine A 14,300 Machine B 35,100 Machine C 29,575 Carrying amount Machine's carrying amount in relation to the cash-generating unit's carrying amount (%) 18% 44% 37% The entity must conduct an impairment test because of a significant market downturn for its products. There is active market for machine A and as per 31 December 20X1 Machine A's fair value less costs to sell is determined as CU12 500. Management could neither determine the fair value less costs to sell nor the value in use of any other individual asset within the cash-generating unit. The value in use of the cash-generating unit is CU 66 000. Determine of the impairment and the allocation of the impairment loss to Machines A, B and C, and the new carrying amount after impairment