Question 8. Lollipop Co held a cash generating unit at $850,000. There was evidence of impairment at the year end and so Lollipop Co determined that the cash generating unit's fair value was $900,000, but to sell the unit, Lollipop Co would incur costs of $75,000. The discounted present value of the future cash flows of the cash generating unit was $775,000. What impairment should Lollipop Co recognise in its statement of profit or loss in relation to the cash generating unit?

$25,000

$nil

$75,000

$100,000