Otter Ltd has an item of plant with a cost of $4,200,000, and at 30 June 20X4 the accumulated depreciation was $600,000 and its estimated residual amount $200,000; its accumulated impairment was $150,000 at the beginning of the reporting period.
-Otter Ltd has adopted the cost model for the class of assets.What is the carrying amount of the asset at 30 June 20X4?
A)$3,650,000
B)$3,400,000
C)$3,450,000
D)$3,250,000

Question

Quizplus · Accepted Answer

Carrying amount = cost - accumulated depreciation - accumulated impairment + estimated residual amount
Carrying amount = $4,200,000 - $600,000 - $150,000 + $200,000 = $3,450,000

Otter Ltd Has an Item of Plant with a Cost