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

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.

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