Exercise 7.3: Impairment of an individual asset, calculating value-in-use Flash Ltd acquired a machine for $125 000 on 1 July 2022. It depreciated the asset at 10% p.a. on a straight-line basis. On 30 June 2024, Flash Ltd conducted an impairment test on the asset. It determined that the asset could be sold to other entities for $77 000 with costs of disposal of $1000. Management expect to use the machine for the next four years with expected cash flows from use of the machine being: 2024 $40 000 2025 30 000 20 25 000 2027 20 000 The rate of return expected by the market on this machine is 8%. Required Assess whether the machine is impaired. If necessary, provide the appropriate journal entry to recognise any impairment loss. (LO3 and L04)