At reporting date Guilder Limited estimated an impairment loss of €50 000 against its single cash-generating unit. The company had the following assets:
$\bullet$Headquarters Building €100 000;
$\bullet$Plant €60 000;
$\bullet$Equipment €40 000.
The net carrying amount of Plant after allocation of the impairment loss is:
A) €60 000;
B) €45 000;
C) €35 000;
D) €10 000.

Question

At reporting date Guilder Limited estimated an impairment loss of €50 000 against its single cash-generating unit. The company had the following assets: 
$\bullet$Headquarters Building €100 000;
$\bullet$Plant €60 000;
$\bullet$Equipment €40 000.
The net carrying amount of Plant after allocation of the impairment loss is:
A) €60 000;
B) €45 000;
C) €35 000;
D) €10 000.

Quizplus · Accepted Answer

The Answer is B

At Reporting Date Guilder Limited Estimated an Impairment Loss of €50