Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 5 . On 1 July 2 0 X 7 , it is discovered that the damage to the machine is worse than originally thought.

15. On 1 July 20X7, it is discovered that the damage to the machine is worse than originally thought.
The machine is now considered to be worthless and the recoverable amount of the factory as a cash generating unit is estimated to be $950,000.
At 1 July 20X7, the cash generating unit comprises the following assets:
$'000
Building 500
Plant and Equipment 335
Goodwill 85
Net current Assets ( at recoverable amount 250
1,170
The plant and Equipment Carrying amount includes $35000 for a damaged machine
In accordance with IAS 36, what will be the carrying amount of Aphrodite Cos plant and equipment when the impairment loss has been allocated to the cash generating unit?
A. $262,500
B. $300,000
C. $237288
D. $280,838

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Governmental Accounting

Authors: Steven M. Bragg

2022nd Edition

1642210781, 978-1642210781

More Books

Students also viewed these Accounting questions

Question

Define and describe the sections in a job description.

Answered: 1 week ago

Question

Discuss the relationship between job analysis and HRM processes.

Answered: 1 week ago