alleryStart learning →Cost 1,000; 5 years; impaired to 450 at year 2; recoverable 500 at year 3. New carrying amount?
ARs 500
BRs 300
CRs 600
DRs 400
Answer & Solution
Correct answer: D. Rs 400
Without impairment the carrying amount would be 1,000 less 3 years at 200 = Rs 400, which caps the reversal below the Rs 500 recoverable amount.
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