On 31 December 2012 HiRise Ltd's Balance Sheet Shows Motor

Multiple Choice

On 31 December 2012 HiRise Ltd's balance sheet shows motor vehicles at a cost price of $200,000 less accumulated depreciation $50,000.HiRise Ltd uses the cost model to value its assets.On 31 December 2012 an estimate is made that the recoverable amount of the vehicles is $120,000.Under IAS 36/AASB 136 the accounting entry to record the write down of the motor vehicles to recoverable amount is:

A) Dr.Impairment loss on motor vehicles expense $80,000; cr.Accumulated Depreciation $80,000
B) Dr.Impairment loss on motor vehicles expense$30,000; cr.Motor Vehicles $30,000
C) Dr.Impairment loss on motor vehicles expense $30,000; cr.Accumulated Depreciation and Impairment losses $30,000
D) No entry is required