Reference no: EM132706429
Daimen Ltd is a manufacturing company with three subsidiaries. The following information relates to the goodwill accounts of Daimen Ltd's subsidiaries, each of which is determined to be a separate CGU, for the year ended 30 June 2020 (prior to recognising any impairment losses):
Goodwill Accumulated impairment loss - Goodwill Carrying amount of CGU Recoverable amount of CGU
$ $ $ $
Natalie Ltd 50,000 10,000 250,000 270,000
Patient Ltd 40,000 Nil 310,000 250,000
Victoria Ltd 60,000 Nil 450,000 600,000
Problem 1: What is the carrying amount of goodwill for Daimen Ltd as at 30 June 2020 after recognising any impairment losses on 30 June 2020?
Option 1: $110,000
Option 2: $100,000
Option 3: zero
Option 4: $150,000