Based on the following information,what is the impairment amount to be recorded?

A)$0
B)$10,000
C)$15,000
D)$20,000

Name: Based on the following information,what is the impairment amount to be recorded? A)$0 B)$10,000 C)$15,000 D)$20,000
Brand: Quizplus
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Question

Based on the following information,what is the impairment amount to be recorded?

A)$0 
B)$10,000 
C)$15,000 
D)$20,000

Quizplus · Accepted Answer

A)Recoverable amount = higher of VIU and FV - SC,which is higher of 230,000 and
240,000 - 5,000 = 235,000
Recoverable amount = 235,000
BUT asset NBV = (750 - 530)= 220,000 which is lower than the recoverable amount;therefore no impairment exists

Based on the Following Information,what Is the Impairment Amount to Be