1. MegaConstruct bought a production plant at a cost of $950,000, with an estimated residual value of $65,000 and an estimated useful life of six years. The company uses the straight-line depreciation method. Expected net cash inflows from the plant are $260,000 on 30 June 20X3, $210,000 on 30 June 20X4, and $200,000 on 30 June 20X5. The values of $1 at the end of each year are 0.92 for year 1, 0.85 for year 2, and 0.78 for year 3. Calculate the carrying amounts of MegaConstruct’s plant after applying impairment losses and prepare a balance sheet extract to reflect these adjustments.