megamind (Pty) owns a plant with a carrying value of R800 000 (R1 000 000 cost less R200 000 accumulated depreciation) on 1 january 2022. the plant is being depreciated at a rate of 10% per annum, on the straight-line basis.

on 30 june 2022, the plant was damaged by a water leak in the ceiling. with the lack of availability of replacement parts, the plant could not be repaired, and management has estimated the remaining useful life of the plant as being five years. the plant is still being used but at a reduced capacity

present value of future cash flows from the plant's use R500 000

current disposal value R50 000

trade-in value for a replacement machine (only available if the plant is replaced) R220 000

Cost of replacement machine R1 200 000

calculate the impairment on the machine, as well as the carrying value as at 31 december 2022