On 31 December 2022 Fraser Ltd's statement of financial...
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Accounting
On 31 December 2022 Fraser Ltd's statement of financial position shows motor vehicles at a cost price of $400 000 less accumulated depreciation $100 000. Fraser Ltd uses the cost model to value its assets. On 31 December 2022 an estimate is made that the recoverable amount of the vehicles is $270 000. Under AASB 136, Impairment of Assets, the accounting entry to record the write down of the motor vehicles to recoverable amount is which of the following? DR Impairment loss on motor vehicles (expense) $30 000; CR Accumulated depreciation and impairment losses $30 000 No entry is required DR Impairment loss on motor vehicles (expense) $30 000; CR Motor vehicles $30 000 DR Impairment loss on motor vehicles (expense) $130 000; CR Accumulated depreciation $130 000
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