QUESTION ONE (5 marks) On 1 July 2014 Numac Drilling Services Australia, purchased a Specialist land drilling Machine from Magnum Germany for Melbourme Metro Tunnel rail works costing S 3,000,000. Additionally, Numac incurred the following expenses related to the machine purchase: 40,000 for customisation of the truck by Magnum Germany $ 30,000 initial onetime legal, transportation (from Germany) and assembling expenses, .$11,000 for first year insurance; 15,000 Annual maintenance cost The machine is carried at cost and has 10 years of useful life and 20,000 residual value REQUIRED a) Determine the cost of acquisition of the machine and explain the reason for including/excluding amounts detailed above (1 mark). b) Provide journal entries to account for the machine on 1 July 2014 (acquisition) and on 30 June 2015 (end of the first year of useful life) (1.5 marks). c) On 30 June 2017 (3 years after the purchase), you as the accountant are provided with the following machine valuations S 2,000,000. $ 1,850,000 Value in use of the machine Net selling price As per AASB136 Impairment, determine the amount (if any) impairment loss is to be recognized at 30 June 2017 by Numac Ltd. (Show all workings supporting your answer) (1.5 marks) d) Account for the impairment loss, if any, for the year ending 30 June 2017. If no impairment loss is to be recognized, prepare journal entries assuming an impairment loss amount of $ 100,000. (1 mark)