Yuan Inc. has a large piece of machinery, and management has determined there is potential impairment. This piece of machinery has independent cash inflows. The following information relates to the machine: Net book value is $21 million. The machine could be sold for $16 million less a 8% commission. If the company was forced to sell immediately, the proceeds would likely be $13 million. If the machine continues to be used in production, it is anticipated to generate $6 million of cash flows for the next five years. It would require annual maintenance costs of $600,000 a year. The equipment could be sold for $200,000 at the end of the five years. Assume Yuan has a discount rate of 10%. Required: 1. Evaluate the machine for impairment. Justify your conclusion. (4 mark) 2. If so, what is the amount of the impairment loss? (6 marks)