Question 1 (a) On 1 July 2018, Gotham Ltd purchased equipment for $ 85,000 to manufacture a new product for sale overseas. The estimated useful life was 8 years, with a residual value of $5,000. Gotham Ltd uses straight-line depreciation. On 30 June 2016 there was an indication that the machine could be impaired due to fluctuations in the exchange rate, and Gotham Ltd calculated the recoverable amount of the machine. The net selling price was $61,000 and the value in use was estimated to be $45,000. Required: 1. Determine if the equipment is impaired 2. Prepare the necessary journal entry to account for the impairment if applicable. Impairment: Carrying amount Recoverable amount Value in use Fair value General Journal Date Jun 30 Particulars Dr Cr