Information on the capital assets of Longhorn Ltd, a public Corporation, follows: $\begin{array}{ll}
\text { Carrying amount: } & \$ 80,000 \
\text { Value in use: } & \$ 68,000 \
\text { Fair value less selling costs: } & \$ 72,000
\end{array}$ The recoverable amount to be used for the impairment test is:

Question

Quizplus · Accepted Answer

The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use. Here, that's $72,000 (fair value less selling costs) versus $68,000 (value in use), making $72,000 the correct answer.

Information on the Capital Assets of Longhorn Ltd, a Public