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
Answer: B