Impairment is defined as a reduction in the value of a company asset, whether fixed or intangible which decline the asset's quality, quantity, or market value.   (a) The carrying amount of a machinery is RM525,000.  This consists of goodwill of RM75,000, development costs of RM150,000 and machinery of RM300,000.  The machinery has a recoverable amount of RM330,000.  Calculate the carrying amount of the machinery after the impairment loss has been allocated.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Impairment is defined as a reduction in the value of a company asset, whether fixed or intangible which decline the asset's quality, quantity, or market value.
  (a) The carrying amount of a machinery is RM525,000.  This consists of goodwill of RM75,000, development costs of RM150,000 and machinery of RM300,000.  The machinery has a recoverable amount of RM330,000.  Calculate the carrying amount of the machinery after the impairment loss has been allocated.
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