A piece of land has been revalued annually at the year-end. An indicator of impairment was found on 30 June 2021. The impairment test confirmed impairment losses. The information about the land on 30 June 2021 is shown below. Fair Value $200,000 Carrying Amount $160,000 Recoverable Amount $100,000 What should be done for recording the events that occurred on 30 June 2021? i. Revaluation, then impairment ii. Impairment, then revaluation iii. Revaluation only iv. Impairment only
A piece of land has been revalued annually at the year-end. An indicator of impairment was found on 30 June 2021. The impairment test confirmed impairment losses. The information about the land on 30 June 2021 is shown below. Fair Value $200,000 Carrying Amount $160,000 Recoverable Amount $100,000 What should be done for recording the events that occurred on 30 June 2021? i. Revaluation, then impairment ii. Impairment, then revaluation iii. Revaluation only iv. Impairment only
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 85P
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