Forages Delmas had impaired a drilling rig during a mining downturn. The recovery in activity leads to an upward revision of expected cash flows: the rig's recoverable amount is now 150,000. Its carrying amount is 84,000 and would have been 132,000 without the impairment, net of depreciation. The residual value is estimated at 12,000 and the remaining useful life at 5 years. Calculate the reversal and the annual straight-line depreciation for the following years.
- Current carrying amount
- 84,000
- Carrying amount without the impairment, net of depreciation
- 132,000
- Recoverable amount
- 150,000
- Residual value
- 12,000
- Remaining useful life (years)
- 5