Asset held for sale?

Dear Sir,

A question in June 2015 exam:

Metric owns an item of plant which has a carrying amount of $248,000 as at 1 April 2014. It is being depreciated
at 12½% per annum on a reducing balance basis.
The plant is used to manufacture a specific product which has been suffering a slow decline in sales. Metric has
estimated that the plant will be retired from use on 31 March 2017. The estimated net cash flows from the use of
the plant and their present values are:
Net cash flows Present values

$$
Year to 31 March 2015 120,000 109,200

Year to 31 March 2016 80,000 66,400

Year to 31 March 2017 52,000 39,000
–––––––– ––––––––
252,000 214,600

On 1 April 2015, Metric had an alternative offer from a rival to purchase the plant for $200,000.

Answer :
Is the lower of its carrying amount ($217,000) and recoverable amount ($214,600) at 31 March 2015.
Recoverable amount is the higher of value in use ($214,600) and fair value less (any) costs of disposal ($200,000)).
Carrying amount = $217,000 (248,000 – (248,000 x 12·5%))
Value in use is based on present values = $214,600

Could you exlplain the answer, please?