Zoe Incorporated has a large piece of machinery where management has assessed and determined there is potential impairment. This piece of machinery has independent cash inflows. The following information relates to the machine:

- Carrying amount (book value) was $4 million.

- The Machnie has a fair value of $3 million and the cost of disposal are estimated to be $100,000.

- If the machine continues to be used in production, it is anticipated to generate $1.4 mil per year of undiscounted net cash flows for the next 3 years.

- The value in use or Present Value of the cash flows is $2.8 million.

1) If Zoe is a public company following IFRS, is the machine impaired? explain, and if there is impairment, what is the amount of the impairment loss.

2) If Zoe is a private company following IFRS, is the machine impaired? Explain, and if there is impairment, what is the amount of the impairment loss.