Trans-Iroise acquires a refrigerated truck on 1 January 20X1 for 240,000, depreciated on a straight-line basis over 8 years with no residual value. At the end of 20X2, after the depreciation for the year, it recognises an impairment loss of 60,000; the remaining useful life is unchanged. At the end of 20X4, after the depreciation for the year and following a change in estimates, the truck's recoverable amount is 140,000. Calculate the reversal at the end of 20X4 and the truck's carrying amount after the reversal.
- Acquisition cost
- 240,000
- Useful life (years)
- 8
- Impairment loss at the end of 20X2
- 60,000
- Recoverable amount at the end of 20X4
- 140,000