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Jam Pty Ltd Has Two Cash Generating Units

Question 2

Multiple Choice

Jam Pty Ltd has two cash generating units. CGU A had a carrying amount of $700 and value in use of $750. CGU B has a carrying amount of $900 and a value in use of $800. The carrying amount of the head office assets is $400. CGU A and B utilise the head office services equally. The impairment loss for CGU A is:


A) $0.
B) $50.
C) $150.
D) $350.

Correct Answer:

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