Question
general owned a 100% subsidary, matilda. that is treated as a cash generating unit. on march 2022, there was an industrial accident (a gas explision)
general owned a 100% subsidary, matilda. that is treated as a cash generating unit. on march 2022, there was an industrial accident (a gas explision) that caused damaged to some of matilda's plant. the assets of matilda immediately before the accidemt were:
goodwill 1800 patent. 1200 factory building 4000 plant. 3500 receivables. 1500
as a result of the accident. the recoverable amount of matida is $6.7 million
the explosion destroyed to the point of no further use an item of plant that had a carrying amount of $500,000.
matilda has an open offer from a competitor of $1million for 8rs patent. the receivables and cash are already stated at their values less costs to sell ( net realisable values).
Calcilate the carrying amount of the assets as at 31 March 2022 after applying any impairment losses.
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