SG Bhd is an oil palm company which operated in Johor Bahru since year 2009. The primary business activities are cultivating oil palm trees, as well as harvesting and processing fresh palm fruit bunches into palm oil and palm kemel. As part of its operation, the company owns two processing palm oil machines. Information concerning the two machines are summarised as below: Machine Date of Cost Useful life in purchase years 1 Jan 2010 RM176,000 10 B 1 Jan 2013 RM200,000 5 All machines are depreciated on straight line method with no residual value. In 2015, the export market of palm oil was adversely affected by El Nino weather which caused higher temperatures and drier climate. The phenomenon had affected fresh fruit yields and lowered the productivity. As a result, the machines employed to process oil might have been impaired. The net sales value of machine A and machine B as at 31 December 2015 were RM50,000 and RM60,000 respectively. During the year 2016, the govemment introduced a new water management technique to mitigate and lessen the El Nino impact. Thus, the palm oil production has increased tremendously. A major modification on machine A has also increased the output capacity of the machine. The cost of modification was RM80,000 and the remaining useful life remained unchanged. The expected net sales value of the machines as at 31 December 2016 were as follow Machine A RM120,000 Machine B RM48,000 Required: i) Determine the impairment loss or reversal of impairment loss (if any) for the machines above for the year ended 31 December 2015 and 31 December 2016. (10 marks) ii) Prepare the Statement of Financial position (Extract) as at 31 December 2016. Show all workings