Test your understanding 1 Recoverable amount An entity owns a car that was involved in an accident at the year end. It is barely useable, so the value in use is estimated at $1,000. However, the car is a classic and there is a demand for the parts. This results in a fair value less costs to sell of $3,000. The opening carrying amount was $8,000 and the car was estimated to have a life of eight years from the start of the year. Identify the recoverable amount of the car and any impairment required