Based on the Following Information, What Is the Recoverable Amount

question 8

Multiple Choice

Based on the following information, what is the recoverable amount? $$\begin{array} { | l | r | } \hline \text { Cost } & \$ 750,000 \\\hline \text { Accumulated depreciation } & 530,000 \\\hline \text { Value in use (sum of discounted cash flows) } & 300,000 \\\hline \text { Fair value } & 200,000 \\\hline \text { Disposal costs } & 15,000 \\\hline\end{array}$$

• A)$185,000
• B)$200,000
• C)$220,000
• D)$300,000

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Definitions:

PST

Depending on the context, this could stand for Pacific Standard Time, which is the time zone observed on the west coast of the United States, or Provincial Sales Tax, a tax imposed by some Canadian provinces.

GST

Goods and Services Tax; a value-added tax levied on most goods and services sold for domestic consumption.

Mill Rate

A property tax rate expressed in tenths of a cent, applying to the assessed value of property.

Property Taxes

Taxes paid by property owners, typically annually, based on the assessed value of their property and the tax rate of the local government.