Karthik LLC has an equipment as at 31st December 2020 with following details Particulars Amount...
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Accounting
Karthik LLC has an equipment as at 31st December 2020 with following details Particulars Amount OMR Market value of the equipment 40,000 Carrying amount of the equipment 50,000 Cost of disposal for equipment 1,000 Present values of expected cash flows from the usage of equipment 46,000 Expected future cash flow from the equipment 55,000 (A) From the above information find recoverable amount of the equipment .
a- OMR 39,000
b- OMR 55,000
c- OMR 50,000
d- OMR 46,000
(B) Considering above information of Karthik LLC, The appropriate accounting treatment for the equipment shall be a- Dr: Impairment loss OMR 4,000 and Cr: Equipment OMR 4,000
b- No impairment loss is recognized
c- Dr: Equipment OMR 4,000 and Cr: impairment loss OMR 4,000
d- Dr: Impairment loss OMR 5,000 and Cr: Equipment OMR 5,000
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