W Ltd has a printing process comprising four separate but highly interdependent assets. The printing machinery has a combined carrying amount of $1 000 000 made up as follows:

Asset 1 $100 000

Asset 2 $200 000

Asset 3 $300 000

Asset 4 $400 000

1 000 000

After considering various issues, it was determined that the value in use of the cash-generating unit was $800 000, while the fair value less costs of disposal was $750 000.

The impairment loss that would be applied against Asset 2 would be:

a.

$60 000

b.

$80 000

c.

$40 000

d.

$20 000

e.

$50 000