Impairment
Assume the same information as in the above question"Five identical vehicles that cost $500,000 (total) are acquired on April 1, 2019. Their estimated residual value is $20,000 and expected life is eight years. These assets are Class 10 with a maximum CCA rate of 30%. The company has a December 31 year end.", except for the following:
Cougar's review for impairment indicates the following:
Axrent's value in use..................................$64,000
Fairvalue len dispostl costs.........................73,000
Instructions
a) Calculate the recoverable amount.
b) Calculate the impairment loss.

Question

Impairment
Assume the same information as in the above question"Five identical vehicles that cost $500,000 (total) are acquired on April 1, 2019. Their estimated residual value is $20,000 and expected life is eight years. These assets are Class 10 with a maximum CCA rate of 30%. The company has a December 31 year end.", except for the following:
Cougar's review for impairment indicates the following:
 Axrent's value in use..................................$64,000
Fairvalue len dispostl costs.........................73,000
 Instructions 
a) Calculate the recoverable amount.
b) Calculate the impairment loss.

Quizplus · Accepted Answer

The Answer of Impairment
Assume the same information as in the above question"Five identical vehicles that cost $500,000 (total) are acquired on April 1, 2019. Their estimated residual value is $20,000 and expected life is eight years. These assets are Class 10 with a maximum CCA rate of 30%. The company has a December 31 year end.", except for the following:
Cougar's review for impairment indicates the following:
 Axrent's value in use..................................$64,000
Fairvalue len dispostl costs.........................73,000
 Instructions 
a) Calculate the recoverable amount.
b) Calculate the impairment loss.

Impairment Assume the Same Information as in the Above Question"Five Identical