A cash-generating unit comprises the following assets: £000 Goodwill 220 Land 1,280 Plant and equipment 400 1,900 One of the pieces of equipment, carried at £80,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £1,500,000. What will be the carrying amount of the land after the impairment loss has been recognised? Select one: a. £1,200,000 b. £1,142,858 c. £1,010,526 d. £1,055,736 e. £300,000
A cash-generating unit comprises the following assets: £000 Goodwill 220 Land 1,280 Plant and equipment 400 1,900 One of the pieces of equipment, carried at £80,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £1,500,000. What will be the carrying amount of the land after the impairment loss has been recognised? Select one: a. £1,200,000 b. £1,142,858 c. £1,010,526 d. £1,055,736 e. £300,000
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....
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Question
A cash-generating unit comprises the following assets:
|
£000 |
|
220 |
Land |
1,280 |
Plant and equipment |
400 |
|
1,900 |
One of the pieces of equipment, carried at £80,000, is damaged and will have to be scrapped. The recoverable amount of the cash-generating unit is estimated at £1,500,000.
What will be the carrying amount of the land after the impairment loss has been recognised?
Select one:
a.
£1,200,000
b.
£1,142,858
c.
£1,010,526
d.
£1,055,736
e.
£300,000
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