Based on the Following Information, What Is the Recoverable Amount

question 55

Multiple Choice

Based on the following information, what is the recoverable amount for the impairment test? $$\begin{array} { | l | r | } \hline \text { Cost } & \$ 750,000 \\\hline \text { Accumulated depreciation } & 530,000 \\\hline \text { Value in use (sum of discounted cash flows) } & 230,000 \\\hline \text { Fair value } & 240,000 \\\hline \text { Disposal costs } & 5,000 \\\hline\end{array}$$

• A)$220,000
• B)$230,000
• C)$235,000
• D)$240,000

---

Definitions:

So-Called

Used to express one's skepticism or disdain about the validity or accuracy of a term or description.

Romantic Love

A deep emotional and affectionate attachment to a person, often characterized by passion, intimacy, and commitment.

Passionate Love

An intense emotional and sexual attraction to a partner, characterized by enthusiasm and a high level of energy in love-related activities.

So-Called

A term used to indicate that the word or phrase that follows is not an accurate or genuine description of the subject.