Value in use is:

Select one:

a. amount obtainable from disposal of an asset excluding any selling costs.

b. initial cost of an asset less any expected disposal costs.

c. incremental costs directly attributable to disposal of an asset.

d. the present value of future cash flows expected to be derived from an asset.

2)

The impairment test must be applied to tangible assets:

Select one:

a. at each balance date.

b. every three years.

c. at each reporting date including interim reporting dates such as half-year.

d. only if there is an indication that the asset may be impaired.

3)

An entity acquired an item of plant in exchange for an item of equipment. The equipment has a carrying value of $5000 and a fair value of $6000. The journal entry to record the acquisition of the plant will show:

Select one:

a. a loss on acquisition of $1000.

b. proceeds on sale of equipment of $1000.

c. a gain on sale of $1000.

d. proceeds on sale of plant of $1000.