A non-current asset has the following information available for valuation at balance date: Depreciable Amount $50,000
Accumulated depreciation $10,000
Residual value $5,000
Recoverable amount $35,000
Value in use $80,000
Which amount should be the carrying amount of this asset at balance date?

Question

Quizplus · Accepted Answer

The carrying amount of an asset is the lower of its carrying amount before impairment and its recoverable amount. The carrying amount before impairment is $40,000 ($50,000 - $10,000), and the recoverable amount is $35,000. Therefore, the carrying amount should be $35,000.

A Non-Current Asset Has the Following Information Available for Valuation