Chloe Ltd purchased equipment on 1 April 20X2 for GHS 100,000. The equipment was depreciated using the reducing balance method at 25% per annum. Chloe Ltd prepares accounts to 31 March annually. Depreciation was charged up to and including 31 March 20X4. At that date, the recoverable amount of the equipment was GHS 42,000. According to IAS 36 Impairment of Assets, what was the impairment loss on this equipment calculated on 31 March 20X4?

• A. GHS Nil
• B. GHS 8,000
• C. GHS 14,250
• D. GHS 25,000