A cash-generating unit comprises the following assets: £000 Goodwill 220 Land 1,280 Plant and equipment 400 1,900 One of the pieces of equipment, carried at £80,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £1,500,000. What will be the carrying amount of the land after the impairment loss has been recognised? Select one: a. £1,200,000 b. £1,142,858 c. £1,010,526 d. £1,055,736 e. £300,000
A cash-generating unit comprises the following assets: £000 Goodwill 220 Land 1,280 Plant and equipment 400 1,900 One of the pieces of equipment, carried at £80,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £1,500,000. What will be the carrying amount of the land after the impairment loss has been recognised? Select one: a. £1,200,000 b. £1,142,858 c. £1,010,526 d. £1,055,736 e. £300,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A cash-generating unit comprises the following assets:
|
|
£000 |
|
|
220 |
|
Land |
1,280 |
|
Plant and equipment |
400 |
|
|
1,900 |
One of the pieces of equipment, carried at £80,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £1,500,000.
What will be the carrying amount of the land after the impairment loss has been recognised?
Select one:
a.
£1,200,000
b.
£1,142,858
c.
£1,010,526
d.
£1,055,736
e.
£300,000
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