Question: HELLO , SOMEONE CAN YOU PLEASE HELP ME ? Assume that ABC Inc. has a single asset with a historical cost of $100 and accumulated

HELLO , SOMEONE CAN YOU PLEASE HELP ME ?

Assume that ABC Inc. has a single asset with a historical cost of $100 and accumulated amortization of $50. The asset could be sold today for $60 less a 10% sales commission. Alternatively, ABC could use the asset to generate discounted operating cash flows of $40 throughout its remaining useful life and then sold for discounted proceeds amounting to $4. Assuming that ABC adheres to IFRS, is the asset impaired?

A.The answer cannot be determined, since the carrying values of the CGU's other assets and liabilities must be determined.

B.Yes, the asset is impaired by $4.

C.No, there is no impairment since the asset's recoverable amount exceeds its carrying value by $4.

D.Yes, the asset is impaired by $6.

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