Question 1 (a) A company owns an asset that was bought for $240,000 on 1 January 2019 and is being depreciated on a straight-line basis over a six-year period with a residual value of $30,000. The company has carried out an impairment review at 31 December 2020 and expects that the asset will generate the following cash flows over the remainder of its useful life: Note that the cash inflow for 2024 includes the estimated residual value of $30,000. If the company were to sell the asset on 31 December 2020, the selling price would be $120,000 but disposal costs would amount to $5,000. Required: What would be the impairment loss, if any, for the asset given a discount rate of 10% ? (b) Pine inc. adopts the revaluation model for its plant and machinery. The company acquires one item of plant for HK\$10,000 on 1 January 2021. The plant is depreciated on a straight-line basis over its useful economic life, which is estimated to be five years. On 1 January 2023 the company revalues the plant at its fair value of HK $9,6 oo. On 1 January 2025 the plant is sold for HK \$4,0oo. Any revaluation surplus is amortised to retained earnings as the plant is being depreciated. Required Determine revaluations surplus if any and prepare journal entries for Jan. 12023 and Jan. 12025