RM
Freehold land	4,000,000
Warehouse	3,000,000
Accumulated depreciation - Warehouse	(400,000)
Cardboard box Machinery	450,000
Accumulated depreciation Machinery	(85,000)
Office Equipment	360,000
Accumulated depreciation Off. Equipment	(135,000)

1. On 31 December 2019, TASCA Bhd conducted an impairment test for cardboard box manufacturing machinery and found that there is an indication of impairment. However, the management anticipates the present value of future net cash flow from cardboard box manufacturing machinery to be RM341,200 and its fair value to RM343,000. The estimated selling cost to be 4% of its fair value.

2. TASCA Bhd expecting that the demand for cardboard box manufacturing machinery would increase in the foreseeable future, the entity did not dispose of its machine. On 31 December 2020, it further estimated the present value of future net cash flow from cardboard box manufacturing machinery to be RM304,600 and its fair value to RM320,000. The estimated selling cost to be 4%.

3. The accounting policies related to the depreciation of the assets are as follows:

• Warehouse 6%
• Cardboard Box Machinery 15%
• Office Equipment 20%

1. Prepare the journal entries to record the impairment and depreciation of the Cardboard Box Machinery on 31 December 2019 and 31 December 2020.