Identify the recoverable amount of car and any impairment

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Reference no: EM132692662

A company owns a car that was involved in an accident at the year end. It is barely useable, so the value in use is estimated at $1,000. However, the car is a classic and there is a demand for the parts. This results in a fair value less costs to sell of $3,000. The opening carrying value was $8,000 and the car was estimated to have a life of eight years from the start of the year.

Required:

Problem 1: Identify the recoverable amount of the car and any impairment required.

Reference no: EM132692662

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