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 estimates it will be able to sell the machinery for $650,000. It will cost Holmes $20,000 to transport the machinery to a prospective buyer if the machinery is sold. Holmes calculates the value in use of the machinery as $640,000. Regarding the value of machinery at 30 June 2019, which of the following statement is correct in accordance with AASB 136 Impairment of Assets. Holmes needs recognise $25,000 impairment for the machinery. The recoverable amount of the machinery is $650,000 Holmes needs recognise $35,000 impairment for the machinery. The recoverable amount of the machinery is $630,000