A cash-generating unit comprises the following assets:   £000 Goodwill 440 Land 2,560 Plant and equipment 800   3,800

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

 

£000

Goodwill

440

Land

2,560

Plant and equipment

800

 

3,800

 

 

One of the pieces of equipment, carried at £160,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £3,000,000.

What will be the carrying amount of the land after the impairment loss has been recognised?

 

a.
£2,111,472
b.
£2,285,716
c.
£2,021,052
d.
£2,400,000
e.

£300,000

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