A division of an entity has the following balances in its financial statements: $ 700,000 950,000...

 

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A division of an entity has the following balances in its financial statements: $ 700,000 950,000 Goodwill Plant Building Intangibles Other net assets ,000 2,300,000 800,000 430,000 Following a period of losses, the recoverable amount of the division is deemed to be $4 million. A recent valuation of the building showed that the building has a market value of $2.5 million. The other net assets are at their recoverable amount. The entity uses the cost model for valuing building and plant. To the nearest thousand, what is the balance on plant following the impairment review? A division of an entity has the following balances in its financial statements: $ 700,000 950,000 Goodwill Plant Building Intangibles Other net assets ,000 2,300,000 800,000 430,000 Following a period of losses, the recoverable amount of the division is deemed to be $4 million. A recent valuation of the building showed that the building has a market value of $2.5 million. The other net assets are at their recoverable amount. The entity uses the cost model for valuing building and plant. To the nearest thousand, what is the balance on plant following the impairment review?

Answer rating: 100% (QA)

Calculated as Goodwill Plant Building Intangibles Other net assets Total book va... View the full answer