QUESTION 4 Boxtor Ltd purchased an item of PPE on 1/4/2014 for $46 700. The economic life of this asset is ten years. Boxtor Ltd uses the cost model for its PPE and the straight line method for depreciation. You have been provided with the following values: At 31 March 2016 At 31 March 2018: Fair value less costs to sell $29 000 $25 500 Value in use (VIU) $34 000 $26 500 Required: (i) At 31 March 2016 (before impairment is considered), determine the carrying amount and the recoverable amount of this item of PPE. Show all workings (ii) At 3 1 March 2016, prepare the journal entry to recognise the impairment loss. Show all workings (iii) At 3 1 March 2018, prepare the journal entry to recognise any reversal of the impairment loss. Show all workings. (iv) Prepare the PPE section, in the Statement of Financial Position as at 31 March 2018, to present the above PPE item after the reversal of the impairment loss. Question 4 continued: (iv) After Reversal of Impairment Boxtor Ltd Statement of Financial Position as at 31 March 2018 Non-current assets