Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show the calculation step by step and details. I have to post it again since the previous answer from the expert was incompetent and
Please show the calculation step by step and details. I have to post it again since the previous answer from the expert was incompetent and didn't include the cash inflow and outflow.
3. Assignment (9 points) An asset which costs 200.000 on 1 January 20X5 is being depreciated on the straight-line basis over five years with a residual value of 40.000 . The company which owns the asset has conducted an impairment review at 31 December 20X6 and estimates the asset will generate the following cash flows over the remainder of its useful life: Outflows in 000 Year Inflows in 000 20X7 45 5 20X8 20X9 35 60 5 5 The cash inflow for 20X9 includes the estimated residual value of 40.000 . The asset could be sold on 31 December 20X6 for 110.000 . Disposal costs would be 6.000 (31 Dec. 20X6). Calculate the amount of impairment loss that has occurred and explain how this should be accounted for. Show the single steps of your calculation.
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