Page 347 - FR Integrated Workbook 2018-19

Answers

Example 1 cont.

(W1) Carrying Amount

$
1 January 20X4 Cost 60,000

Depreciation: 20X4 $60,000 × ¼ (15,000)
10
20X5 $60,000 × ¼ × / 12 (12,500)
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31 October 20X5 Carrying Amount 32,500
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(W2) Impairment

$

Carrying Amount (W1) 32,500
Fair value less cost to sell (31,350)
($33,000 less 5% commission)

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Impairment 1,150
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