hfac332 please help

Red Flag Limited is a manufacturing company with various production lines included in its business. The company has a 31 December year-end. Each of their production lines can be seen as a separate cash-generating unit. Their main production line consists of the following assets as at 31 December 2022 : Additional information: 1.) The recoverable amounts of the assets, on 31 December 2022, were determined to be as follows: 2.) The machinery was damaged, but it is still in working order. On 31 December 2022, the fair value less costs of disposal of the machine is less than its carrying amount and the value in use of the machine cannot be determined independently of the value in use of the other assets in the cash-generating unit. Red Flag Limited further determined that the smallest identifiable group of assets that includes the machinery and generates cash inflows that are largely dependent on the cash flows from other assets, is the production line to which the machinery belongs. ANNEXURE I: FORMATIVE ASSESSMENT 2 3.) The recoverable amount of the cash-generating unit was determined as R4 500000 as at 31 December 2022. 4.) The land is accounted for by making use of the revaluation model. The land was originally acquired for R920 000. All other assets are accounted for by making use of the cost model. REQUIRED: 1.1) With reference to the damaged machinery and the requirements of IAS 36, discuss whether an impairment loss in respect of the machinery alone can be recognised if the entity has no intention of replacing the machinery. No amounts or calculations are required, only discussion based on the information given. (10 marks) 1.2) Prepare the journal entries required in the records of Red Flag Limited for the financial year ending 31 December 2022 to account for the impairment loss of the main production line. For answering this requirement, you can assume that the machinery had a recoverable amount of R920 000 on 31 December 2022. (37 marks)