Homework Answers
Loss on impairment-
Book value of asset - Recoverable amount, that is, higher of total future cash flows or fair value of an asset
Book value of an asset = $ 751000
Higher of
future cash flows = $698000
Or
Fair value of an asset = $554000
So, recoverable amount = $698000
Therefore, impairment loss is ,
= $751000 - $698000
= $53000
Therefore, the correct answer is option 4th, $53000.
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