Carney Co has three CGUs -X, Y and Z. On 1 December, Carney Co acquired a competitor, Wine Co with identifiable assets of $120 000, giving rise to $90 000 goodwill. Prior to the acquisition, the assets of CGU X had a carrying amount of $560 000, those of CGU Y had a carrying amount of $920 000 and those of CGU Z had a carrying amount of $900 000. The goodwill arising on the acquisition of Wine Co is expected to benefit all three CGUs, whilst the identifiable assets are to be allocated equally to CGU X and CGU Z. The CGUs are run from a central head office, which is not CGU. It has a carrying amount of $200 000. Management has decided that this should be allocated to CGUs based on their carrying amount. What is the carrying amount of CGU X for the purposes of testing for impairment?

Answer rating: 100% (QA)

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