Question 13) Daleel Corporation uses an equipment for its production process that is purchased on 31/12/2015. That equipment is depreciated using straight line method over 8 years useful life with 10,000 residual value. Due to a flood that affected the area and the production process, on 31/12/2018, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant: (24 marks)

Cost AED 700,000

Present value of estimated future cash flows 400,000

Fair value of the factory determined by appraisal 450,000

Dismantle the asset and ship it to any buyer 5,000

Legal fees to finalize the selling process 3,000

Required:

Determine the amount of impairment loss, if any.