What amount would be charged to profit for the impairment

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Question 1: Riley acquired a non-current asset on 1 January 2019 at a cost of $100,000 which had a useful life of ten years and a nil residual value. The asset had been correctly depreciated up to 31 December 2024. At that date the asset was damaged and an impairment review was performed. On 31 December 2024, the fair value of the asset less costs to sell was $30,000 and the expected future cash flows were $8,500 per annum for the next five years. The current cost of capital is 10% and a five year annuity of $1 per annum at 10% would have a present value of $3.79. What amount would be charged to profit or loss for the impairment of this asset for the year ended 31 December 2024?

Reference no: EM132563098

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