QUESTION 4 25 Marks Mayan Lid acquired a machine on 2 January 2018 that needs a major inspection every 2 years. The cost price of the machine is NS2 000 000 and it is estimated that the cost of a major inspection will be NS200 000. The useful life of the machine is estimated to be 8 years and the company has a 31 December year end. Required: 4.1 Show the carrying amount of the machine as at 31 December 2018 and 2019. 10 North Lid produces a single product and owns boiler plants A, B and C. Each boiler plant is located on a different continent. A produces a component that is assembled in either B or C. The combined capacity of B and C is not fully utilized. North's products are sold worldwide from either B or C. For example B's production can be on C's continent if the products can be delivered faster from B than from C. Utilisation levels of Band depend on allocation of sales between the two sites. Case 1 There is an active market for A's products Case 2 There is no active market for A's products. Required: 4.2 For each case identify Cash generating units for A.B and C. 10 4.3 List the indicators considered in assessing whether assets are likely to be impaired. 5