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Calculate the impairment loss

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Reference no: EM132651798

Question - Bow Ltd reported the following assets in its statement of financial position at 30 June 2020:

Plant $800,000

Accumulated depreciation (240,000)

Land 300,000

Patent 240,000

Office equipment 620,000

Accumulated depreciation (340,000)

Inventory 220,000

Cash and cash equivalents 180,000

$1,780,000

The recoverable amount of the entity was calculated to be $1,660,000. The fair value less costs of disposal of the land was $280,913.

Required -

a) Calculate the impairment loss?

b) Prepare the journal entries for the impairment loss.

Reference no: EM132651798

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