Question 1 Impairment including Intangibles 22 marks McMolecule Limited (MML) is a holding company with investments in a number of areas. Its financial year ends on 30th June. On 1^ July 2018, MML purchased a satellite launching business called ZiffelFactor, with a facility just outside of Woomera, South Australia. ZiffelFactor had built up a reputation as quality orbitinjection business, growing quickly after the Guiana Space Centre Cluster launch failure in 1996. MML's acquisition of the ZiffelFactor Cash Generating Unit (CGU) for $300 million brought the following assets into the business: Asset Fair Value at Date of Acquisition Cash 1 000 000 Inventory (INV): - boosters 230 000 000 - fuel 40 000 000 270 000 000 PPE - Launch Plant (PPEL) 5 000 000 PPE - Land (LAND) 12 000 000 PPE - Buildings (PPEB) $000 000 Intangible Asset - Launch control software (LCS) 2 000 000 Goodwill (GW) 5 000 000 TOTAL 300 000 000 At the time of acquisition, the Launch Plant was envisaged to have a useful life of 10 years and a residual value of $1000 000. The Buildings had an anticipated life of 20 years with a nilresidual value. The useful life of the Launch Control Software cannot be ascertained