In 2010,Bambung Corporation acquired production machinery at a cost of £410,000.In 2013 when accumulated depreciation was £100,000,Banbung reported an impairment loss of £75,000.Now,in 2017 the machinery has a book value of £190,000.The recoverable amount of the machinery is £210,000.and its value in use is £195,000.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)£75,000
B)£20,000
C)£ 5,000
D)-0-

Question

Quizplus · Accepted Answer

The Answer of In 2010,Bambung Corporation acquired production machinery at a cost of £410,000.In 2013 when accumulated depreciation was £100,000,Banbung reported an impairment loss of £75,000.Now,in 2017 the machinery has a book value of £190,000.The recoverable amount of the machinery is £210,000.and its value in use is £195,000.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)£75,000
B)£20,000
C)£ 5,000
D)-0-

In 2010,Bambung Corporation Acquired Production Machinery at a Cost of £410,000.In