Impairment

There was an explosion in a factory. The carrying amounts of its assets were as follows: $000 Goodwill 100 Patents 200 Machines 300 Computers 500 Buildings 1,500 TOTAL 2,600 The factory operates as a cash-generating unit. An impairment review reveals a net selling price of $1.2 million for the factory and value in use of $1.95 million. Half of the machines have been blown to pieces but the other half can be sold for at least their carrying amount. The patents have been superseded and are now considered worthless. Required: Discuss, with calculations, how any impairment loss will be accounted for.