Based on the following information,what is the net book value of the asset on the December 31,2018 balance sheet?

A)$185,000
B)$200,000
C)$300,000
D)$350,000

Question

Based on the following information,what is the net book value of the asset on the December 31,2018 balance sheet?

A)$185,000 
B)$200,000 
C)$300,000 
D)$350,000

Quizplus · Accepted Answer

C)Recoverable amount = higher of VIU and FV-SC which is higher of 300,000 and
200,000 - 15,000 = 185,000.Recoverable amount = 300,000
NBV = 750 - 400 = 350,000;higher than recoverable;impairment is 350 - 300 = 50,000
New NBV = 300,000

Based on the Following Information,what Is the Net Book Value