December 2022 Fraser Ltd's statement of financial positi motor vehicles at a cost price of $400 000 less accumulated dep $100 000. Fraser Ltd uses the cost model to value its assets. On December 2022 an estimate is made that the recoverable amour vehicles is $270 000. Under AASB 136, Impairment of Assets, the accounting entry to record the write down of the motor vehicles recoverable amount is which of the following?

December 2022 Fraser Ltd's statement of financial positi motor vehicles at a cost price of $400 000 less accumulated dep $100 000. Fraser Ltd uses the cost model to value its assets. On December 2022 an estimate is made that the recoverable amour vehicles is $270 000. Under AASB 136, Impairment of Assets, the accounting entry to record the write down of the motor vehicles recoverable amount is which of the following?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On 31 December 2022 Fraser Ltd's statement of financial position shows
motor vehicles at a cost price of $400 000 less accumulated depreciation
$100 000. Fraser Ltd uses the cost model to value its assets. On 31
December 2022 an estimate is made that the recoverable amount of the
vehicles is $270 000. Under AASB 136, Impairment of Assets, the
accounting entry to record the write down of the motor vehicles to
recoverable amount is which of the following?
O No entry is required
DR Impairment loss on motor vehicles (expense) $130 000; CR Accumulated
depreciation $130 000
DR Impairment loss on motor vehicles (expense) $30 000; CR Motor vehicles
$30 000
DR Impairment loss on motor vehicles (expense) $30 000; CR Accumulated
depreciation and impairment losses $30 000

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