Page 70 - FR Integrated Workbook 2018-19

Chapter 5

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)
–––––––

31 October 20X5 Carrying Amount 32,500
–––––––

(W2) Impairment

$

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

–––––––

Impairment 1,150
–––––––

Illustrations and further practice

For homework try TYU question 1 from Chapter 5

64