QUESTION 4 Read the case study below and answer the questions based on the case study FOXM Limited (POM) is a JSE isted entry that operates in the construction industry and has a financial year end of 30 Juno. The company has numerous forms of property, plant profitability and liquidity for the financial year ended 30 June 2021. These circumstances have bought into question the recoverability of the carrying amounts of the The information below pertains to an torn of equipment held by hot Date of purchase and date bought to use my 2018 Purchase price R5milion Useful 5 years and residual value is RO The asset is measured using the cost model as defined per IAS 16 On 28 June 2021, an independent valuer was contracted to ascertain the fair value of the asset as it showed indicators of impairment. Below is the detail from the valver's report Fair Value R1.2million Costs to sell the asset it HXM had to do so today R200 000 Value in use R1.4milion Useful life and residual value remain unchanged from original estimate . . 4.1 in your own words discuss the concept of depreciation of an asset as well as the concept of the impairment of an asset ( (8) 42 Prepare the journal entries to account for the equipment for the year ended 30 June 2021. Narrations are required (17)