Palm Beach Ltd Has a Cash Generating Unit (CGU)and Has

Palm Beach Ltd has a cash generating unit (CGU) and has been assessed for impairment and it has determined an impairment loss of $100 000. The following information relates to the assets as at 30 June 2012. $$\begin{array} { | l | r | r | } \hline & \text { Carrying amount } & \text { Recoverable amount } \\\hline \text { Buildings } & 800000 & 900000 \\\hline \text { Equipment } & 200000 & 150000 \\\hline \text { Goodwill } & 50000 & \\\hline\end{array}$$ In accordance with AASB 136 Impairment of Assets what should be the carrying amount of buildings as at 30 June 2012?

A) $720 000
B) $760 000
C) $800 000
D) $900 000

Correct Answer:

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