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Spring Ltd purchased an item of equipment on 1 July 204 for $2.2 million. At...

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Accounting

Spring Ltd purchased an item of equipment on 1 July 204 for $2.2 million. At that time the useful life of the equipment was assessed to be 10 years, with no residual value. Spring applies the cost model to its equipment.
On 30 June 206 the recoverable amount of the equipment was assessed to be $1,460,000. Accordingly, an impairment loss of $300,000 was recognised. The remaining useful life of the equipment was assessed to be 8 years.
On 30 June 209(three years later) the same equipment's carrying amount is $912,500 and its recoverable amount is $1,150,000.
What is the Carirying Amount of the equipment after recognition of the impairment adjustment on 30 June 209 in accordance with the requirements of AASB136 Impairment of Assets?
$725,000
$1,100,000
$675,000
$1,150,000
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