Test your understanding 6-Impaired asset On 31 December 20X1, an entity noticed that one of its items of plant and machinery is often left idle. On this date, the asset had a carrying amount of $500,000 and a fair value of $325,000. The estimated costs required to dispose of the asset are $25,000. if the asset is not sold, the entity estimates that it would generate cash inflows of $200,000 in each of the next two years. The discount rate that reflects the risks specific to this asset is 10%. Required: (a) Discuss the accounting treatment of the above in the financial (b) How would the answer to part (a) be different if there was a statements for the year ended 31 December 20X1. balance of $10,000 in other components of equity relating to the prior revaluation of this specific asset