QUESTION THREE [20] On 1 January 2022, (the beginning of its current financial year), Xan Chiou Limiteds plant had a carrying amount of R3,3 million. At that date, the plant had a remaining useful life of 11 years. Required: Answer the following questions which are independent from one another: 1. True or False discuss the reason for your answer. (6) Xan Chiou Limited is required to estimate the recoverable amount of the plant at the end of each reporting period. 2. At 31 December 2022, the plants fair value less costs to sell is R2,7 million and its value in use is R3,2 million. Calculate the impairment loss, if any, for 2022 (6) 3. How would you respond in the following circumstances regarding impairment tests on the plant at 31 December 2022: a) The value in use is R3.2 million and the fair value less cost of disposal has yet to be determined. (3) b) The value in use is R2.2 million and the fair value less cost of disposal has yet to be determined. (3) 4. The plant generates cash inflows that are largely independent of those from the other assets of Xan Chiou Limited. Assume that there was no basis for making a reliable estimate of the plants fair value less costs to sell, how would you determine the recoverable amount of the plant? (2)