Reference no: EM132970638

Problem 1: A motor vehicle with a cost of $500 and accumulated depreciation of $120 has a recoverable amount of $290. What is the appropriate journal entry to recognise the impairment loss?

Select one:

Option 1: Dr Impairment loss 500
Cr Accumulated impairment loss 500

Option 2: Dr Accumulated depreciation 120
Cr Motor vehicle 120

Option 3: Dr Impairment loss 90
Cr Accumulated impairment 90

Option 4: Dr Impairment loss 170
Cr Accumulated impairment loss 170

Option 5: Dr Impairment loss 210
Cr Accumulated impairment loss 210