What carrying value should be included in the statement of financial position at 31 October 2010?

The directors of Sec Co are carrying out an impairment review of the company’s non­current assets for the financial statements for the year to 31 October 2010.

They have the following information about a particular asset:

Carrying amount (at 1 November 2009) $380,000

Depreciation charge for year to 31 October 2010$76,000

Market value$285,000

Expected costs of selling$20,000

Value in use$250,000

What carrying value should be included in the statement of financial position at 31 October 2010?
A . $250,000
B . $265,000
C . $285,000
D . $304,000

View Answer

Answer: B