Prepare respective journal entries for the situation above. 2 In 2012, Minyak Corp. set up a division within the company to explore the potential use of bio-oil from a locally grown plant. By 2014, the initiatives were shown to be not commercially viable even though support was received from the Biotech Oil Engineering Association and Environmental society. An impairment review on the Bio-oil Division was carried out on 31 December 2014, and documented as follows: RM'000 RM'000 Book value of net assets of Bio-oil Division in financial statement where net assets consist of: 1,800 Goodwill Plant and machinery Building RM450,000 RM600,000 RM750,000 England: Financial Fair value less costs of disposal of Bio-oil Division's net assets 750 3rd edn. (Revised), Value in use: 2,145 1,000 800 Net cash flows from operations before tax Additional net cash flows from bio-oil energy improvement Finance costs Principles, Southern 16% porting Standard 136 July 2016. K. (2012). Intermediate Current interest rate Required: Identify the necessary accounting treatment for the Bio-oil Division by Minyak Corp. 3 IJ Corp. is a company that provides apparel for motorbikes and other two-wheeled Vehicle activities. This includes safety riding jackets, gloves, riding pants and boots. IJ Corp. started their business in 2000 after acquiring a leasehold land in Shah Alam and building a plant to manufacture this line of clothing. The plant has been identified as a 4th edn., Singapore