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What amount should ben co record the impairment

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Problem 1: In 2020, during an impairment review, Ben Co. reduced the carrying amount of its long-lived assets used in operations from ?120,000 to ?100,000. Ben Co., concluded that the fair value of the same assets is ?130,000 this year. At what amount should Ben Co. record the impairment in the current year's financial statements under US GAAP?

a. $0

b. $10,000

c. $20,000

d. $30,000

Problem 2: When its carrying value exceeds its recoverable amount, an asset is impaired according to IFRS. What does "recoverable amount" of an asset mean?

a. The lower of its fair value plus cost to sell or value in use.

b. The greater of its fair value plus cost to sell or value in use

c. The lower of its fair value minus cost to sell or value in use.

d. The greater of its fair value minus cost to sell or value in use.

Reference no: EM133012609

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