Holmes Ltd (Holmes) purchased machinery on 1 July 2018 for $700,000. Depreciation is calculated on a straight-line basis over 20 years. As at 30 June 2019. Holmes estimated it will be able to sell the machinery for $650,000. It would cost Holmes $20,000 to transport the machinery t a prospective buyer if the machinery is sold. Holmes calculated the value in use of the machinery as $640,000. Holmes used revaluation model for the machinery. Regarding the value of machinery at 30 June 2019, which of the following statements is correct in accordance with AASB 136 Impairment of Assets. The recoverable amount of the machinery is $630,000 The recoverable amount of the machinery is $650,000 O Holmes needs recognise $25,000 impairment for the machinery. Holmes needs recognise $35,000 impairment for the machinery