In 2010,TallyHo Farms acquired production machinery at a cost of £410,000.In 2013 when accumulated depreciation was £160,000,Banbung reported an impairment loss of £75,000.Now,in 2017 the machinery has a book value of £140,000.The recoverable amount of the machinery is £235,000.and its value in use is £210,000.During impairment testing,Bambung recognized the possibility of a reversal of the previous impairment loss.What amount,if any,should Bambung recognize as a reversal of impairment loss?
A) £95,000
B) £75,000
C) £40,000
D) £25,000
Correct Answer:
Verified
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