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Dears, I hope you doing well
I’ve this question and I need the explanation of the answer please , I need to learn not just the correct answer, Thanks in advance…
Lollipop SA held a cash generating unit at $850,000. There was evidence of impairment at the year end and so Lollipop determined that the cash generating units fair value was $ 900,000, but to sell the unit, Lollipop would incur costs of $75,000. The discounted present value of the future cash flows of the cash generating unit was $ 775,000.
What impairment should Lollipop recognise in its statement of profit or loss in relation to the cash generating unit?
A. $25,000
B. $nil
C. $75,000
D. $100,000
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