The Finance Director has been asked to report to the board of Kesatria Bhd on the impairment review on the cash-generating unit. The situations are as follows:

Situation 1

The company has suffered an impairment loss of RM90,000 to one of its cash-generating units. The carrying amounts of the assets in the cash-generating unit prior to adjusting for impairment are:

	RM
Goodwill	50,000
Product Patent	10,000
Land and Buildings	100,000
Plant and Machinery	50,000
Net Current Asset	10,000

Additional information:

1. 1. The product patent is now estimated to have zero value.
2. 2. The land and building could be sold for cash proceeds of RM100,000.

Situation 2

During the year to 31 December 2018, Kesatria Bhd acquired Doremi Bhd for RM10 million, upon which tangible assets being valued at RM7 million and goodwill on acquisition being RM3 million. Assets with a carrying amount of RM2.5 million were subsequently destroyed. Kesatria Bhd has carried out an impairment review and has established that Doremi Bhd could be sold for RM6 million, while its value in use is RM5.5 million.

Required:

1. Allocate the impairment loss to each item of CGU and derive its revised carrying amount for Situation 1.
2. Prepare impairment review and determine the revised amount of goodwill in Situation 2.