On 1 January 2018, Wet Co. acquired a loan investment of $1,600,000 with interest payable annual at 8%. The investment is measured at amortised cost.

At 1 January 2018, there is a 5% probability that the borrower will default on the loan during 2018 resulting in a 100% loss.

At 31 December 2018 there is 3% probability that the borrower will default on the loan before 31 December 2019 resulting in a 100% loss. There is no significant increase in the borrowers credit risk during 2018.

Required:

In accordance with HKFRS 9, what impairment loss is recognised at initial recognition and on 31 December 2018?