The storm also caused damaged to some of the machinery in the factory, lowering its operating capacity. Ravioli considered the need to perform an impairment assessment and determined the following as...

The storm also caused damaged to some of the machinery in the factory, lowering its operating capacity. Ravioli considered the need to perform an impairment assessment and determined the following as at 31 December 2021:

Carrying amount of machine,    £500,000

An equivalent replacement machines would cost £620,000

If sold in its current condition, an agent believes the existing machine would sell for £450,000. The agent's sales commission would be £10,000.

In its current condition, the machine could operate for 2 more years, generating cashflows of £250,000 per year. Ravioli's cost of borrowing is 10%.

Calculate the amount of the impairment write-down necessary (if any) as at 31December 2021. You should show all your workings.