Based on the following information,what is the impairment amount to be recorded?

A)$90,000
B)$125,000
C)$130,000
D)$220,000

Question

Based on the following information,what is the impairment amount to be recorded?

A)$90,000 
B)$125,000 
C)$130,000 
D)$220,000

Quizplus · Accepted Answer

A)Recoverable amount = higher of VIU and FV-SC which is higher of 130,000 and 140,000 - 15,000 = 125,000;recoverable amount = 130,000
Asset NBV = (750-530)= 220,000 which is higher than the recoverable amount;impairment exists.Impairment = 130,000 - 220,000 = 90,000

Based on the Following Information,what Is the Impairment Amount to Be