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The net assets of Fragrance, a cash generating unit (CGU), are:   $ Property, plant and equipment 200,000 Allocated goodwill 50,000 Product patent 20,000 Net current assets (at net realizable value)  30,000 Total 300,000 As a result of adverse publicity, Fragrance has a recoverable amount of only $200,000. What would be the value of Fragrance's property, plant, and equipment after the allocation of the impairment loss? $154,545   $170,000   $160,000   $133,333

The net assets of Fragrance, a cash generating unit (CGU), are:   $ Property, plant and equipment 200,000 Allocated goodwill 50,000 Product patent 20,000 Net current assets (at net realizable value)  30,000 Total 300,000 As a result of adverse publicity, Fragrance has a recoverable amount of only $200,000. What would be the value of Fragrance's property, plant, and equipment after the allocation of the impairment loss? $154,545   $170,000   $160,000   $133,333

FINANCIAL ACCOUNTING
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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The net assets of Fragrance, a cash generating unit (CGU), are:

 

$

Property, plant and equipment

200,000

Allocated goodwill

50,000

Product patent

20,000

Net current assets (at net realizable value) 

30,000

Total

300,000

As a result of adverse publicity, Fragrance has a recoverable amount of only $200,000.

What would be the value of Fragrance's property, plant, and equipment after the allocation of the impairment loss?

  1. $154,545

     

  2. $170,000

     

  3. $160,000

     

  4. $133,333

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