18) Marie acquired a 100% shareholding in Luke for $500,000 when Luke's fair value of net assets was $400,000. The next year the recoverable amount of Luke was $150,000 and the fair value of Luke's net assets was $120,000.
18) Marie acquired a 100% shareholding in Luke for $500,000 when Luke's fair value of net assets was $400,000. The next year the recoverable amount of Luke was $150,000 and the fair value of Luke's net assets was $120,000.
Chapter16: Property Transactions: Capital Gains And Losses
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:18) Marie acquired a 100% shareholding in Luke for $500,000 when
Luke's fair value of net assets was $400,000. The next year the
recoverable amount of Luke was $150,000 and the fair value of
Luke's net assets was $120,000.
Determine the amount of impairment gain/loss.
Select one:
O a. $20,000 loss
O b.
$20,000 gain
O c.
$50,000 gain
O d. $50,000 loss
4
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