KwaDukuza Local Municipality purchases a state-of-the-art coffee machine that is used in entertaining high-profile investors. After one year, at the end of the 2022 financial year, the coffee machine is severely damaged in a burglary at the mayor's office. Estimates for the repair of the coffee machine amount to R45,000. A new coffee machine of the same model costs R150,000. Assuming the carrying value of the coffee machine is R125,000 and that it has a useful life of six years, determine the following: 1. Whether, and why, the asset should be impaired 2. The recoverable service amount of the coffee machine 3. The impairment of the asset