Question

A company has equipment with a carrying amount of €700,000. The value-in-use of the equipment is...

A company has equipment with a carrying amount of €700,000.

The value-in-use of the equipment is €705,000, and its fair value less cost of disposal is €590,000. The equipment is expected to be used in operations in the future. What amount (if any) should Toro report as an impairment to its equipment?

Select one:

a.
No measurement of the loss is made or recognized even though the fair value is €590,000.

b.
None of the above answers is correct

c.
The carrying amount is higher than the fair value less cost of disposal and therefore there is an impairment of 110,000

d.
I want to leave this question blank

e. The value-in-use of €705,000 exceeds the carrying amount of the equipment of €700,000 therefore, the impairment is assumed to have occurred

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