The Carrying Amount of a Cash-Generating Unit Was Considered to Be

question 21

Multiple Choice

The carrying amount of a cash-generating unit was considered to be impaired. The impairment loss was $600. The cash-generating unit included the following assets: Goodwill $1000; Buildings $2000; Plant & Equipment $1500. The carrying amount of Goodwill after allocation of the impairment loss is:

• A) $0
• B) $867
• C) $600
• D) $400

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Definitions:

Aquatic Plant

Plants adapted to living in water environments, playing crucial roles in the ecosystem by providing oxygen and habitat to aquatic life.

Bubbles

Spherical pockets of gas trapped in a liquid or solid form, often visible as balls of air or gas in water or other liquids.

Cofactors

Non-protein chemical compounds or metallic ions that are required for an enzyme's activity as a catalyst.

Endergonic Reactions

Chemical reactions that require an input of energy to proceed and are characterized by a positive change in free energy.