GreenEnergy Corp acquired a renewable energy plant on 1 January 20X2 for $3,500,000 with an estimated residual value of $500,000 and an estimated useful life of 20 years. The company applies the straight-line depreciation method. Due to changes in energy prices, the company now forecasts the following net cash inflows: $500,000 on 31 December 20X4, $450,000 on 31 December 20X5, $400,000 on 31 December 20X6, and $350,000 on 31 December 20X7. Using a discount rate of 5%, the present values of $1 at the end of each year are: 0.95, 0.91, 0.86, and 0.82. Required: Determine the recoverable amount and calculate the impairment loss. Prepare the necessary journal entries and discuss the impact on the company’s financial statements as of 31 December 20X4.