Mead Ltd has an asset with a carrying amount of $35 million. The asset has been damaged and, if continued to be used in the business, can only operate at reduced capacity giving a value in use of $25 million. Alternatively, if some repairs are made, it could be sold for $21 million after incurring repair costs of $5 million.

Required:

Determine whether the asset has been impaired and the amount of the impairment loss.