The following information relates to Machine Productive at 31 December 2020:

R

Historic Carrying amount 400 000

Fair value less cost to sell 340 000

Value in Use 320 000

Tax Base 300 000

Remaining useful life 4 years

One year later the fair value less cost to sell was R320 000 and the value in use was R380 000. Machine Productive is

depreciated on a straight-line basis. Assume that the tax rate is 28%, and a capital allowance of R100 000 was granted in 2021

REQUIRED:

Prepare the journal entries relating to the reversal of the impairment loss in the 2021 year of assessment