Bulla Ltd uses the cost model for its buildings. The carrying amount of the buildings as at

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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.

Related Book For answer-question

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: Jul 07, 2023 02:58 AM

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Bulla Ltd uses the cost model for its buildings. The carrying amount of the buildings as at

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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