Pan Ltd acquired a machine for \($250\) 000 on 1 July 2022. It depreciated the asset at 10% p.a. on a straight-line basis.

On 30 June 2024, Flash Ltd conducted an impairment test on the asset. It determined that
the asset could be sold to other entities for \($154\) 000 with costs of disposal of \($2000.

Management\) expect to use the machine for the next four years with expected cash flows from use of the machine being:

The rate of return expected by the market on this machine is 8%.

Required

Assess whether the machine is impaired. If necessary, provide the appropriate journal entry to recognise any impairment loss. 

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2024 $168 000 2025 60.000 2026 50 000 2027 40 000