TION FIVE-CLO 5 MARKS Aasis over a five year period with an estimated residual value of 40.000. The company An asset which cost 200,000 on 1 January 2018 is being depreciated on the straight line which owns the asset has conducted an impairment review at 31 December 2019 and estimates that the asset will generate the following cash flows over the remainder of its useful life: Year Inflows 2020 2021 2022 Outflows 45,000 5.000 35,000 5,000 60,000 5,000 The cash inflow for 2022 includes the estimated residual value of 40.000. The asset could be sold on 31 December 2019 for 110,000. Disposal costs would be 6,000. (a) Determine the asser's value in use, assuming that all cash flows occur at the end of the year concerned and using a discount rate of 8%. (b) Determine the asset's recoverable amount. (c) Calculate the amount of the impairment loss that has occurred. (d) Calculate the amount of depreciation that should be charged in relation to the asset for each of the remaining years of its useful life (ie. after impairment). Present value table Periods Interest rates (0 (3) 15 233 355 4% 5% 0% 8% 9% 10% T 0900 0.980 0.980 0.961 0.971 0.962 0.952 0.943 0025 0.971 0.942 0.915 0.889 0.943 0.007 0800 0.864 0.840 0.935 0.926 0917 0.873 0.857 0.842 0.818 0.794 0.772 0.909 0.826 0.751 Page 8 of 9