At Reporting Date Guzzle Limited Estimated an Impairment Loss of $50

question 15

Multiple Choice

At reporting date Guzzle Limited estimated an impairment loss of $50 000 against its single cash-generating unit. The company had the following assets: headquarters building $200 000; plant $120 000; equipment $40 000. The net carrying amount of the headquarters building after allocation of the impairment loss is:

• A) $103 333
• B) $150 000
• C) $160 000
• D) $172 222