Telepath Co has a year end of $30$ September and owns an item of plant which it uses to

produce and package pharmaceuticals. The plant cost $$750,000$ on $1$ October $20$X$0$ and, at

that date, had an estimated useful life of five years. A review of the plant on $1$ April $20$X$3$

concluded that the plant would last for a further three and a half years and that its fair value

was $$560,000.$

Telepath Co adopts the policy of revaluing its non$-$current assets to their fair value but does

not make an annual transfer from the revaluation surplus to retained earnings to represent the

additional depreciation charged due to the revaluation.

On $30$ September $20$X$3,$ Telepath Co was informed by a major customer that it would no

longer be placing orders with Telepath Co$.$ As a result, Telepath revised its estimates that net

cash inflows earned from the plant for the next three years would be:

Year ended $30$ September: $

$20$X$4220,000$

$20$X$5180,000$

$20$X$6200,000$

Telepath Co's cost of capital is $10\%$ which results in the following discount factors:

Value of $$1$ at $30$ September:

$20$X$40\mathrm{.}91$

$20$X$50\mathrm{.}83$

$20$X$60\mathrm{.}75$

Telepath Co also owns Rilda Co$,$ a $100\%$ subsidiary, which is treated as a cash generating

unit. On $30$ September $20$X$3,$ there was an impairment to Rilda's assets of $$3,500,000.$ The

carrying amount of the assets of Rilda Co immediately before the impairment were:

$

Goodwill $2,000,000$

Factory building $4,000,000$

Plant $3,500,000$

Receivables and cash $($at recoverable amount$)2,500,000$

Total $12,000,000$

Prior to considering any impairment, what is the carrying amount of Telepath Co's plant and

the balance on the revaluation surplus at $30$ September $20$X$3?$

What is the value in use of Telepath Co's plant as at $30$ September $20$X$3?$

What is the carrying amount of Rilda Co's plant at $30$ September $20$X$3$ after the impairment

loss has been correctly allocated to its assets?