Financial Statements 1.5E Practice paper one, is my answer correct?

Deaniedani

I know the answer was £1,200, so I took the carrying amount of £19,600 away from the value in use of £1,800 and got the answer £1,200. Did I do that correctly? If not could someone please help me.

Adele69

Yes.

Recoverable Amount is the higher of Fair Value less Cost of Disposal', or 'Value in Use'
Fair value less Cost of Disposal = 18,200
Value in Use = 18,400

Impairment exists if Carrying Amount is greater than Recoverable Amount, and to write it down would reduce 19,600 to 18,400
Amount of Impairment = 1,200