At reporting date,the carrying amount of a cash-generating unit was considered to be have been impaired by $900.The unit included the following assets: Land $4000; Plant $3000; Goodwill $500.The amount of impairment allocated to the land is:
A)$200
B)$229
C)$300
D)$514

Question

Quizplus · Accepted Answer

The impairment loss is allocated to the assets in proportion to their carrying amounts. The carrying amount of the land is $4000, which is 40% of the total carrying amount of the unit ($4000 + $3000 + $500 = $7500). Therefore, the amount of impairment allocated to the land is $900 * 40% = $360.

At Reporting Date,the Carrying Amount of a Cash-Generating Unit Was