Use the following information to answer questions 5-7 Bling and Blang Co bought a factory building for $200,000 on 1 Jan 20X5 and it is now 31 Dec 20X8. A third party approached Bling and Blang Co. offering to buy the factory building at $250,000. Currently, a similar factory building in that area is available at $280,000. The management accountant has analyzed the income generating ability of the factory building over an estimated remaining useful life of 10 years as follows: Year Discounted future cash flow ($) 1. 38,000 2. What should be the amount recorded in Statement of Financial Position as at 31 Dec 20X8 if the Fair value was to be used?

a.

80,000

b.

200,000

c

250,000

d.

150,000

What should be the amount recorded in Statement of Financial Position as at 31 Dec 20X8 if the Value in use was to be used?

a.

250,000

b.

150,000

c.

80,000

d.

200,000