Myopic adopts the cost model for all of its non-current depreciable assets and because it is listed on the Australian Securities Exchange (ASX), it complies with AASB 116 Property, Plant and Equipment and AASB 136 Impairment of Assets. On 1 July 2020, Myopic Ltd purchased plant at a cost of $3,300,000. The plant has an estimated useful life of 10 years, an estimated residual value of zero and will be depreciated using the straight-line method.

For the year ended 30 June 2021, an impairment loss of $90,000 was recognised in relation to the plant.

For the year ended 30 June 2022, there are indicators of impairment/reversal of impairment present and the recoverable amount of the plant is estimated to be $3,000,000.

Required:

Fill in the blanks. The format of your answer to calculations MUST be as follows: $1,000,000. Round to whole numbers.

What is the carrying amount of the equipment at 30 June 2021 after recognising any impairment loss/reversal of impairment and depreciation $_________ _______? (Please add your answer in the blank box).

Which of the following statements is MOST correct for the year ended 30 June 2022 ? Please add your selected answer (A, B, C or D) in the blank box.

A. The carrying amount of the plant reported in Myopic Ltds balance sheet after any depreciation, impairment and reversal of impairment is $3,000,000.

B. Myopic Ltd would recognise a revenue item Reversal of Impairment loss equal to $440,000.

C. The carrying amount of the plant reported in Myopic Ltds balance sheet after any deprecation, impairment and reversal of impairment is $2,560,000.

Myopic Ltd would recognise a revenue item Reversal of Impairment Loss equal to $914,909.

D. Myopic Ltd would recognise a revenue item Reversal of Impairment Loss equal to $80,000