A Subsidiary Which Is Identified as a Single Cash Generating

question 33

Multiple Choice

A subsidiary which is identified as a single cash generating unit (CGU) has property plant and equipment assets with a carrying amount of $100,000 and a recoverable amount of $80,000.On acquisition of the subsidiary goodwill of $60,000 was recognised.The amount to be identified as goodwill impairment loss is:

• A) $100,000
• B) $80,000
• C) $20,000
• D) $60,000

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Definitions:

Constant Speed

Maintaining a uniform speed regardless of load or other external conditions.

Rotating Magnetic Field

A magnetic field that rotates in space within an electrical machine, such as an induction motor, enabling motion of the rotor.

RPM Speed

A measure of the rotational speed of a mechanical component, denoted in revolutions per minute.