A company has seven assets $($labelled $1$ to $7)$ for which there are indications of possible

impairment. The carrying amount, fair value less costs of disposal and value in use for

each asset are as shown below.

Carrying Amount

Fair Value less costs of disposal

Value in use

Asset $1$

$

$

$

Asset $2$

$25,000$

$30,000$

$45,000$

Asset $3$

$27,500$

$22,500$

$32,500$

Asset $4$

$17,500$

$28,750$

n$/$d

Asset $5$

$21,250$

$16,250$

$17,500$

Asset $6$

$31,875$

n$/$d

$42,000$

Asset $7$

$25,000$

$35,000$

$30,000$

$52,500$

$37,500$

$25,000$

Note: n$/$d $=$ not determined

Required:

a$.$ Calculate the amount of any impairment loss arising in relation to each asset.

$($Show Recoverable Amount$)(7$ marks$)$

b$.$ Briefly describe how impairment loss is determined. $(1$ mark$)$

c$.$ Briefly explain how you determined if there was an impairment loss for assets $4$ and $6.$

$(2$ marks$)$