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Homework answers / question archive / The carrying amount of a cash-generating unit is €900,000

The carrying amount of a cash-generating unit is €900,000

Accounting

The carrying amount of a cash-generating unit is €900,000. This consists of goodwill €250,000 and property, plant and equipment €650,000. The cash-generating unit has a recoverable amount of only €520,000.

How is the impairment loss allocated to the assets of the cash-generating units?

Group of answer choices

Goodwill is decreased by €190,000, and PP&E by €190,000

Goodwill is decreased by €250,000, and PP&E by €130,000

PP&E is decreased by €380,000, goodwill will not change.

Goodwill is decreased by €130,000, and PP&E by €250,000

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