If an Assets 'Value in Use' Exceeds Its Market Value

question 11

Multiple Choice

If an assets 'value in use' exceeds its market value then:

• A) An entity should adjust the current carrying amount of the asset to book value.
• B) It would be expected that the entity would dispose of the asset immediately.
• C) An impairment loss will need to be recorded.
• D) It would be expected that the entity would retain the asset.
• E) No entry is required as cost is the only way to reliably value an asset.

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