Based on the following information,what is the net amount that this equipment should be reported at on FlexiHose's balance sheet at December 31,2018?

A)$220,000
B)$230,000
C)$240,000
D)$250,000

Question

Based on the following information,what is the net amount that this equipment should be reported at on FlexiHose's balance sheet at December 31,2018?

A)$220,000 
B)$230,000 
C)$240,000 
D)$250,000

Quizplus · Accepted Answer

B)Recoverable amount = higher of VIU and FV - SC which is higher of 220,000 and
240,000 - 10,000 = 230,000
Asset NBV = (500 - 250)= 250,000 which is higher than the recoverable amount;impairment exists;report at recoverable amount

Based on the Following Information,what Is the Net Amount That