Question
Jersey plc has a division with the following balances in its Statement of financial position. The division is considered to be a cash generating unit.
Jersey plc has a division with the following balances in its Statement of financial position. The division is considered to be a cash generating unit. Carrying amount 000 Goodwill 640 Plant 1,000 Building 2,260 Intangible assets 800 4,700 A decline in business due to COVID has caused Jersey to conduct an impairment review. The recoverable amount is found to be 3.7million. A recent valuation of the building found it had a market value of 2.5m. To the nearest thousand, what is the balance on the Intangible assets following the impairment review?
a. 640k
b. 630k
c. 800k
d. 729k
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started