Outflow values are 5000 5000 5000

80,000

Question 2 An asset which cost 200,000) on January 2014 is bemg depreciated on the straight line basis over a five en period with an estimated residunt value of 40,000. The company which owns the asset has conducted an impairment review at 31 December 2013 and estinites that time at will generate the following cash flows over the remainder of its useful life Year Inflows Outflows 2000 E000 2016 45 2011 35 2018 60 The casino fu2015 include the estimated residual value Tassel couid ve soldun si Dante 2015 for 110,000. Disposal costs would he 6,000, Required: Determine the asset's value in use, assuming that all csch Monoce the end of the year concerned and using a discount rate of 8% Determine the asset's recoverable amount. Calculate the amount of the impairment loss that has occurred mis en in bow this should be niceounted for d. Calculate the amount of depreciation that should be charged m relation to the asset for each of the remaining years of its useful life salea hneturin Are Question 2 An asset which cost 200,000 on i muary 2014 is being depreciated on the straight line vasts over a five car period with an estimated residunl value of 40.000 The company wuch owns the nsset has conducted an impairment review at 31 December 2015 and estimates that livet i generale le following cash flows over the remainder of its useful life 5 Year Inflows Outllows 000 2000 2016 -15 2017 35 2018 60 The end of 2018 includes the estimated resident value The assel couid be sold on Si Duc 2015 for 110.000. Disposal costs would be 6,000 Required: Determine the asset's value in use, assuming that all exchance at the end of the year concerned and using a discount rate of 8% Determine the asset's recoverable amount Calculnte the amount of the impnirment loss that has occurred and expein bow this should be accounted for d. Calculate the amount of depreciation that should be charged in relation to the asset for each of the remaining years of its useful lite Question 2 An asset which cost {200,000 an 1 Smuary 2014 is beng depend on the straight line basis over a five av period with an estimated residunl value of 40.000 The coming wuch owns the nisset las conducted an impairment review at 31 December 2015 and estimates that inesor will generate the following cash flows over the remainder of its useful life Year Inflows Outlaws 2000 2000 2016 45 2017 35 2018 60 The line fui 2018 metalliche esined resident value The asset could be sold si Decante 2015 for 110,000. Disposal costs would be 6,000, Required: 3 Determine the asset's value in use, assuming that all cash flower the end of the year concerned and using a discount rate of 8% Determine the asset's recoverable amount Calculate the amount of the impairment loss that has occured and can bow this should be accounted for d Calculate the amount of depreciation that should be charged in relation to this asset for each of the remaining years of its useful lite 1