Reference no: EM133003402

Question - Qayser Ltd reported the following information in its statement of financial position at 30 June 2020

Plant $650,000

Accumulated depreciation - plant (195,000)

Intangible assets 180,000

Accumulated amortisation (18,000)

Land 350,000

Total non-current assets 967,000

Cash 180,000

Inventories 130,000

Total current assets 310,000

Total assets 1,277,000

Liabilities 330,000

Net assets 947,000

At 30 June 2020, Qayser Ltd analysed the internal and external sources of information that would indicate deterioration in the worth of its assets. It determined that there were indications of impairment. Qayser Ltd calculated the recoverable amount of the assets to be $1,000,000. The fair value less costs of disposal of the land was $300,000

Required -

A. Calculate the impairment loss.

B. Allocate the impairment loss to the different assets.

C. Prepare the journal entry for any impairment loss at 30 June 2020.