1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alisiya [41]
3 years ago
12

Carrying Amount $120,000 Selling Price $80,000 Costs of Disposal $5,000 Expected Future Cash Flows $90,000 Present Value of expe

cted future cash flows $85,000 Under IAS 36, what is the amount of impairment loss? $35,000 $10,000 $30,000 $45,000
Business
1 answer:
frez [133]3 years ago
8 0

Answer:

$35,000

Explanation:

Under IAS 36, an asset is said to be impaired where the carrying amount is more than the recoverable amount.

The recoverable amount is the higher of the fair value less cost to sell or the value in use which is the present value of the expected future cashflow.

Given that;

Carrying Amount = $120,000

Selling Price = $80,000

Costs of Disposal = $5,000

Hence fair value less cost to sell = $80,000 - $5,000 = $75,000  

Expected Future Cash Flows = $90,000

Present Value of expected future cash flows = $85,000 ( this is the value in use)

Recoverable amount = $85,000 (since the value in use is higher that the fair value less cost to sell)

This is lower than the carrying amount hence the asset is impaired.

Impairment = $120,000 - $85,000

= $35,000

You might be interested in
How can we make sure animal shelters have food and space
Nikitich [7]

Answer:We can donate money or raise a fundraiser to get all the dogs who are in the shelter into a forever home or we can adopt a pet so there will be more space for a new dog to come.

Explanation:

5 0
2 years ago
In most organizations, who is primarily responsible for appraising an employee's performance
ivanzaharov [21]
It is and should be the managers job to do that
8 0
3 years ago
Which category of risk is often managed by purchasing insurance?
____ [38]

Answer:

hazard risk.

Explanation:

When someone buys risk insurance, they aim to protect themselves against disaster risk. The insurance protects against risks of natural disasters, landslides, fires, and others that are provided for in policies. Through insurance, the individual will receive a financial amount to cover any damage provided for in the contract.

4 0
2 years ago
1. R 20 million of new investment has been added to the South African economy, the current MPS is
gogolik [260]

Answer:

Yes

Explanation:

because south Africa can't put the money on the side

6 0
2 years ago
A firm is thinking about adding a product to its product line. What is the most likely outcome if the firm goes through with thi
Alinara [238K]

The <u>most likely outcome</u> when a firm is thinking about adding a product to its product line is D. The new product can be advertised alongside existing products

<h3>What is product advertising?</h3>

Product advertising:

  • Is a management effort geared towards creating a demand for a product.
  • Promotes consumer awareness.
  • Fosters consumer interest in the product.
  • Encourages consumers to make purchase decisions quickly as they see the product.

Thus, most likely, adding a product to the product line will help the new product to be advertised alongside existing ones.

Learn more about product advertising at brainly.com/question/1658517

#SPJ1

<h3>Question Completion with Answer Options:</h3>

A. It will be difficult to manufacture the product.

B. The company will have to work hard to build up the brand.

C. The new product is certain to be accepted by the market.

D. The new product can be advertised alongside existing products.

E. It will take a long time for customers to feel loyal to the product.

7 0
2 years ago
Other questions:
  • Calculate the material and labor variances.
    10·1 answer
  • Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory was taken January 30, 2021, at
    12·1 answer
  • The periodic expensing of an asset over the property's theoretical economic life is referred to as what
    8·1 answer
  • Type the correct answer in the box. Spell all words correcty.
    9·1 answer
  • An increase in the price of gasoline will reduce the amount of gasoline purchased. This is
    6·1 answer
  • Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?
    5·1 answer
  • Price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind t
    12·1 answer
  • In some areas, entrepreneurs can take advantage of _______ where they can lease low-cost office space and have access to office
    15·2 answers
  • Use Present Worth Analysis to determine whether Alternative A or B should be chosen. Items are identically replaced at the end o
    12·1 answer
  • Compared to rail transportation, one of the advantages of shipping by truck is that trucks
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!