Based on the following information,what is the impairment booked at December 31,2018?

A)$150,000
B)$185,000
C)$300,000
D)$450,000

Name: Based on the following information,what is the impairment booked at December 31,2018? A)$150,000 B)$185,000 C)$300,000 D)$450,000
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Question

Based on the following information,what is the impairment booked at December 31,2018?

A)$150,000 
B)$185,000 
C)$300,000 
D)$450,000

Quizplus · Accepted Answer

A)Recoverable amount = higher of VIU and FV-SC which is higher of 300,000 or 200,000 - 15,000 = 185,000;recoverable amount = 300
NBV = 750 - 300 = 450,000;higher than recoverable amount;therefore impairment is 450 - 300 = 150,000

Based on the Following Information,what Is the Impairment Booked at December