On July 1, 20X7 Malta Entity (ME) acquired a shopping mall for $1,000,000. The mall has 20 tenants. ME uses the cost model to account for the mall. ME management decided to depreciate the mall on a straight-line method over 20 years with no residual value. On December 31, 20X9 due to significant adverse changes in the economic environment, the fair value of the shopping center decreased to $750,000; costs to sell are $30,000. The discounted net present value of expected cash flows from this building is $690,000. What is the recoverable amount?

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The Answer of On July 1, 20X7 Malta Entity (ME) acquired a shopping mall for $1,000,000. The mall has 20 tenants. ME uses the cost model to account for the mall. ME management decided to depreciate the mall on a straight-line method over 20 years with no residual value. On December 31, 20X9 due to significant adverse changes in the economic environment, the fair value of the shopping center decreased to $750,000; costs to sell are $30,000. The discounted net present value of expected cash flows from this building is $690,000. What is the recoverable amount?

On July 1, 20X7 Malta Entity (ME) Acquired a Shopping