Help please    The following details relate to a particular asset Future Cash flows (per annum) 90,000 Expected period of cash flows 3 years Discount Rate 10% Open market price of asset 210,000 Cost of asset 630,000 Accumulated depreciation 450,000   Calculate both :   a)determine the recoverable amount for this asset        b)Determine whether the asset is impaired

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. The following details relate to a particular asset

Future Cash flows (per annum)

90,000

Expected period of cash flows

3 years

Discount Rate

10%

Open market price of asset

210,000

Cost of asset

630,000

Accumulated depreciation

450,000

 

Calculate both :

 

a)determine the recoverable amount for this asset       

b)Determine whether the asset is impaired

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