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

A)$230,000
B)$240,000
C)$250,000
D)$270,000

Question

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

A)$230,000 
B)$240,000 
C)$250,000 
D)$270,000

Quizplus · Accepted Answer

C)Recoverable amount = higher of VIU and FV - SC which is higher of 250,000 and
240,000 - 10,000 = 230,000,i.e.250,000
Asset NBV = (500 -230)= 270,000 which is higher than the recoverable amount;impairment exists,thus write down to and report at recoverable amount.

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