Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7:-1 Sohar Company bought an equipment on 1 January 2014 at a cost of 50000 OMR. The useful life was estimated to be 10 years

image text in transcribed
7:-1 Sohar Company bought an equipment on 1 January 2014 at a cost of 50000 OMR. The useful life was estimated to be 10 years and the equipment was expected to have no residual value. The company uses the cost model for this group of assets. At the end of 2016, the conditions showed that there are some indications of impairment and the management decided to make an impairment test. As the result of this test, FV less cost of disposal was 21000 and value in use was calculated as 19800. On 31 December 2019, the conditions have changed and required the reversal of the impairment. As of this date, the recoverable amount was determined as 32000 OMR. Which of the following is the depreciation expense after the impairment at the end of 2016? (For the years 2017 and onwards.) Select one: O a. 3000 O b. 4000 c. 5000 O d. The company stops recording

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

Effective Use Of Teams For IT Audits

Authors: Martin Krist

1st Edition

0849398282, 978-0849398285

More Books

Students also viewed these Accounting questions

Question

Develop successful mentoring programs. page 400

Answered: 1 week ago