Exercise 8.1 Cheer and Beer Limited has a machine with a carrying amount of $750,000. While Cheer and Beer proposes to scale down its operation, it is required to review the impairment of its assets, including the machine. A director of Cheer and Beer operating a similar operation offers to buy the machine at $1 million. Simultaneously, Cheer and Beer estimates that the net cash inow generated from the operation of the machine will be $300,000 in the next year, and then the machine can be returned to the machine suppliers at $500,000. Cheer and Beer thus concludes that no impairment loss should be required on the machine. Discuss and comment on the impairment of Cheer and Beers machine.