Question 11 A cash-generating unit comprises the following assets: £000 700 200 90 20 1,010 Building Plant and equipment Goodwill Current assets Following an impairment review it was discovered that an item of plant carried at £40,000 is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £750,000. Required: What will be the carrying amount of the building after the impairment loss has been recognised (to the nearest £000).

Question 11 A cash-generating unit comprises the following assets: £000 700 200 90 20 1,010 Building Plant and equipment Goodwill Current assets Following an impairment review it was discovered that an item of plant carried at £40,000 is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £750,000. Required: What will be the carrying amount of the building after the impairment loss has been recognised (to the nearest £000).

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....

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A cash-generating unit comprises the following assets: £000 Building 700 Plant and equipment 200 Goodwill 90 Current assets 20 1,010 Following an impairment review it was discovered that an item of plant carried at $40,000 is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at $750,000. What will be the carrying amount of the building after the impairment loss has been recognised (to the nearest $000).
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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? Select one: a) £2,400,000 b) £2,285,176 c)£2,021,052 d)£2,111,472 e)£300,000
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Subject: acounting
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