Q1 A machine purchased on 1 July 2019 cost $100 000 and has a zero estimated salvage value. The useful life of the machine is five years. If the machine was sold on 30 September 2021, what would its net book value be?

a. $55 000

b. $45 000

c. $50 000

d. $60 000

Q2 An impairment loss is calculated as the amount by which the:

Select one:

a. carrying amount value of an asset exceeds its original cost

b. carrying amount of an asset is lower than its recoverable amount

c. carrying amount of an asset exceeds its recoverable amount

d. book value of an asset is lower than its original cost