Impairment:

At 30 June 2023, Carrot Ltd holds a block of land from which it generates revenue by leasing it to agricultural enterprises. The land has a carrying amount of $3.5 million. An independent market appraisal has valued the land at $3.46 million but costs to dispose of the land are estimated at $170 000. The value in use of land is determined to be $3.34 million.

Required

1. Determine the recoverable amount of the land.
2. Prepare the appropriate journal entry to record any impairment loss that should be recognised.