What is the impairment allocated to patent

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Reference no: EM132943725

Question - The following information relates to Bonvey Limited on 31 December 2020.

Asset Carrying Amount

Inventory 200,000

Cash 100,000

Land 1,000,000

Vehicles 300,000

Accounts Receivable 100,000

Patent 200,000

Goodwill 100,000

These assets have a combined value in use of $1,800,000. The value in exchange was noted to be $1,500,000. Inventory was recorded at lower of cost and net realisable value. The patent had an indefinite useful life. Vehicle was depreciated at 10% per annum. Land had a value in use of $940,000 and the related value in exchange was $935,000. What is the impairment allocated to patent?

Reference no: EM132943725

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