Calculate any impairment loss and record the necessary

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Question :

Beauty Ltd has identified recoverable amount on one of its CGUs to be $660,000. Land has a fair value (less costs to sell) of $206,000. All assets are measured using the cost model.

• The CGU consists of the following assets (stated at current carrying amounts):

• Cash 30,000

• Accounts receivable 70,000

• Factory 310,000 Accumulated dep. (20,000)

• Equipment 110,000 Accumulated dep. (10,000)

• Land 210,000

• Goodwill 36,000

Required:

Calculate any impairment loss and record the necessary journal entry for Beauty Ltd.

Reference no: EM132323832

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