Maju Jaya is a manufacturing company that has been operating for the last 30 years. The companys oldest manufacturing equipment is still in a good, operating condition. The equipment was bought 15 years ago at a cash price RM2 million. The useful life of the equipment is 20 years while its residual value is set at 10% of its original cost. Maju Jaya uses straight line method to depreciate all manufacturing equipment. For the past three years, Maju Jaya has decided to evaluate the manufacturing equipment for impairment. Maju Jaya estimates that the equipment has a remaining useful life of 15 years. In addition, it is also estimated that the nett cash inflow from the equipment will be RM10,000 per

Required: (a) Determine the amount of impairment loss. (10 marks) (b) Provide the journal entry for the above transaction if an impairment loss is recognized. (5 marks) (c) Assume that the fair value of the equipment is determined at RM1.5 million. Explain how to recognize the value.