On 1 January 2017, Asian food Ltd purchased and installed a machine which was ready to use. The machine costed $1,500,000 at the time of purchase and had an expected residual value of $300,000. The machine has an estimated useful life of 15 years. Asian food Ltd depreciated machine on a straight-line basis over its useful life. An independent assessment and review of the machine at the end of 2018 determined that due to certain damages in the machine, the fair value of the machine at 31 December 2018 was $910,000 and the disposal costs were $10,000. Management believed machinery could still be used in production however less than full capacity and it could generate annual net cash flows of $110,000 for the next 13 years. Management does expect any changes in residual value and used a discount rate of 5 per cent for discounting the future cash flows. 1. Determine the carrying amount of asset at 31 December 2018. 2. Calculate the amount of impairment loss at 31 December 2018- provide detailed calculations and explain where necessary 3. Provide a journal entry necessary to recognise impairment in the machine. 4. Assume that this machine was earlier revalued by Asianfoods and previous revaluation increment was $100,000. Provide journal(s) at 31 December 2018 to record impairment calculated in (b). Show calculations/workings. (3 Marks) as