In 2010, Bambung Corporation acquired production machinery at a cost of £410,000, which now has a book value of £190,000. The undiscounted cash flows from use of the machinery is £175,000. and it’s fair value in use is £155,000. What amount should Bambung recognize as a loss on impairment?
A. £35,000
B. £20,000
C. £15,000
D. -0-
Answer:C
In 2010, Bambung Corporation acquired production machinery at a cost of £410,000, which now has a book value of £190,000. The undiscounted cash flows from use of the machinery is £175,000. and it’s fair value in use is £155,000. What amount should Bambung recognize as a loss on impairment?
A. £35,000 B. £20,000 C. £15,000 D. -0-