TS acquired an item of plant at a cost of $800 000 on 1 April 2014. The plant had an estimated residual value of $50 000, and an estimated life of five years, neither of which has changed. TS uses straight line depreciation. On 31 March 2016, TS was informed by a major customer (who buys products produced by the plant) that it would no longer be placing orders with TS. Even before this information was known, TS had been having difficulty finding work for this plant. It now estimates that net cash inflows earned from the plant for the next 3 years will be:

Year ended	$000
31 March 2017	220
31 March 2018	180
31 March 2019	170

On 31 March 2019, the plant is still expected to be sold for its estimated realisable value. TS has confirmed that there is no market in which to sell the plant at 31 March 2016. TSs cost of capital is 10% and the following values should be used:

Value of $1 at	$
End of year 1	0.91
End of year 2	0.83
End of year 3	0.75

Question 2 (b) (ii)

TS owned a 100% subsidiary, SS, that is treated as a cash generating unit. On 31 March 2016, there was an industrial accident (a gas explosion) that caused damage to some of SSs plant. The assets of SS immediately before the accident were:

Asset	$000
Goodwill	1 800
Patent	1 200
Factory building	4 000
Plant	3 500
Receivables and cash	1 500

As a result of the accident, the recoverable amount of SS is $6.7 million. The explosion destroyed (to the point of no further use) an item of plant that had a carrying amount of $500 000.

SS has an open offer from a competitor of $1 million for its patent. The receivables and cash are stated at their fair value less costs to sell (net realisable values)

Required

Calculate the carrying amount of the assets in (i) and (ii) above at 31 March 2016 after applying any impairment losses.

Work to the nearest $1 000