On 31 December 20X1, U purchased 100% of the equity share capital of V, and V became

Question:

On 31 December 20X1, U purchased 100% of the equity share capital of V, and V became a subsidiary of U on that date. U paid $110 million for the shares, and the fair value of the net assets of V at 31 December 20X1 was $100 million. on consolidation is written off over 10 years, starting in 20X2. At 31 December 20X2, the of V showed the following balances:
$ million
Property, plant and equipment:
Land and buildings...............................50
Plant and machinery..............................30
Net current assets.................................15
95
On 31 December 20X2, the directors of U carried out an impairment review in which V was treated as a single cash-generating unit. The recoverable amount of the cash-generating unit at 31 December 20X2 was computed as $96 million. No assets within the cash-generating unit had suffered obvious impairment.
What is the reduction in the consolidated reserves of U as a result of the impairment review of V (not including the normal annual write-off of goodwill)?
A................ ................$1 million
B................................$5 million
C................................$8 million
D................................$9 million
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