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MC Question 12
The net assets of Fyngle, a cash generating unit (CGU), are:
| $ | |||
|---|---|---|---|
| Property, plant and equipment | 200,000 | ||
| Allocated goodwill | 50,000 | ||
| Product patent | 20,000 | ||
| Net current assets (at net realisable value) | 30,000 | ||
300,000 |
As a result of adverse publicity, Fyngle has a recoverable amount of only $200,000.
What would be the value of Fyngle’s property, plant and equipment after the allocation of the impairment loss?
A $154,545
B $170,000
C $160,000