Monkey Shines Ltd., a Canadian public corporation, owns equipment for which the following year-end information is available: Carrying amount (book value)...........................$\$ 120,000$
Value in use..........................................................102,000
Fairvalue less disposal costs...............................108,000 The recoverable amount to be used in the determination of impairment is

Question

Quizplus · Accepted Answer

The recoverable amount is the higher of fair value less disposal costs and value in use. In this case, the higher of the two is the fair value less disposal costs, which is $108,000. Therefore, the recoverable amount is $108,000.

Monkey Shines Ltd $120,000\$ 120,000$120,000 Value in Use

Monkey Shines Ltd $\$ 120,000$ Value in Use