Steady Ltd tested one of its cash-generating units (CGU) for impairment and determined there was an impairment loss of $40,000. The CGU had the following assets at carrying amounts: cash $18,000; accounts receivable $32,000; vehicles (net) $120,000; land $240,000; equipment (net) $60,000.

The land had a fair value of $215,000. All assets are measured at cost.

The amount (rounded to nearest dollar) of impairment loss allocated to land is:

Select one:

a.

$25,000

b.

$21,772

c.

$22,857

d.

$20,426