Bulla Ltd uses the cost model for its buildings. The carrying amount of the buildings as at
Fantastic news! We've Found the answer you've been seeking!
Question:
Bulla Ltd uses the cost model for its buildings. The carrying amount of the buildings as at 30 June 2020 is $400,000. Bulla Ltd conducted further tests and below is the information obtained from those tests:
Fair value: $430,000
Cost of disposal: $30,000
Value in use: $410,000
Bulla Ltd has no prior recognition of any impairment loss.
Considering the above information, calculate the new carrying amount of the buildings on 30 June 2020.
Expert Answer:
According to accounting standards if the carrying amount of an asset exceeds ... View the full answer
Related Book For 
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
