Jam Pty Ltd Has Two Cash Generating Units

question 2

Multiple Choice

Jam Pty Ltd has two cash generating units.CGU A had a carrying amount of $700 and value in use of $750.CGU B has a carrying amount of $900 and a value in use of $800.The carrying amount of the head office assets is $400.CGU A & B utilise the head office services equally.The impairment loss for CGU A is:

• A)$0
• B)$50
• C)$150
• D)$350

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Definitions:

Cohesion

The degree to which members of a group or team are united in pursuing common goals and how well they work together.

Team Building

Activities or exercises designed to improve interpersonal relations and group dynamics, enhancing the performance and efficiency of a team.

Accelerate

To increase the speed or rate of something, often referring to the process of speeding up a task or activity.

Heterogeneous

Refers to a mix or composition of elements that are varied or different in nature, composition, or characteristics.