A business which comprises a single cash-generating unit has the following assets. Goodwill 3 Patent 5 Property 10 Plant and equipment 15 Net current assets 2 35 Following an impairment review it is estimated that the value of the patent is $2 million and the recoverable amount of the business is $24 million At what amount should the property be measured following the impairment review? Select one alternative: $8 million $5 million $7 million $10 million

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A business which comprises a single cash-generating unit has the following assets.

Goodwill

3

Patent

5

Property

10

Plant and equipment

15

Net current assets

   2

 

 35

Following an impairment review it is estimated that the value of the patent is $2 million and the recoverable amount of the business is $24 million

At what amount should the property be measured following the impairment review?

Select one alternative:

  • $8 million
  • $5 million
  • $7 million
  • $10 million
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