Calculate the carrying amounts of the assets

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Question - Green Island Limited operates a unit that suffers a massive drop in income due to the failure of its technology on 1 January 2015. The following carrying values were recorded in the books immediately prior to the impairment:

Assets Value ($)

Goodwill 160,000

Technology 40,000

Brands 80,000

Land 400,000

Buildings 240,000

Other net assets 320,000

The recoverable value of the unit is estimated at $560,000. The technology is worthless, following its complete failure and one Brand for $24,000 suffered a loss of $8,000. The other net assets include inventory, receivables and payables. It is considered that the book value of other net assets is a reasonable representation of its net realizable value.

Required - Calculate the carrying amounts of the assets above at 31 January 2010 after applying any impairment losses.

Reference no: EM133036357

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