How much is the gain on the reversal impairment loss

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At the beginning of Year 1, a government entity acquires an intangible asset for ?100,000. The intangible asset has a useful life of 10 years. At the end of Year 3, the entity determines an indication of impairment and makes the following estimates:

Fair value lest cost to sell 60,000
Value in use 50,000

At the end of Year 6 ,Entity A determines an indication that the previous impairment may no longer exist and makes the following estimates:

Fair value less costs to sell 42,000
Value in use 45,000

Problem 1: How much is the gain on the reversal impairment loss?

a. 10,714
b. 8,714
c. 0

Reference no: EM132809867

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