Question: The carrying amount of contract costs relating to a performance obligation and recognized as an asset is $144,000. Further costs required in order to satisfy

The carrying amount of contract costs relating to a performance obligation and recognized as an asset is $144,000. Further costs required in order to satisfy the obligation are estimated to be $36,000. The consideration receivable by the company when the obligation is satisfied is $158,400.

Calculate the amount of the impairment loss (if any) which should be deducted from the contract asset and recognized as an expense.

36,000
$21,600
$50,400
$0

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