Royal has a machine which cost 40,000. It is being depreciated at 20% each year based on the reducing balance method. At 1 January 2020 the asset had a carrying amount of 32,000. At 31 December 2020 Royal performed an impairment review and determined the fair value less disposal costs of the machine was 21,000 and the value in use was 22,400 What is the impairment loss to be recognised at 31 December 2020?

a. 17,600

b. 1,600

c. 3,200

d. 4,600