Reference no: EM132498617

Aero Ltd has determined that its aviation division is a cash-generating unit (CGU). Information as at 30th June 2020 is as follows:

$ Buildings - At cost 600,000

Equipment - At cost 500,000

Inventory 25,000 Land 250,000

Receivables 150,000

Goodwill 90,000

Total 1,615,000

Additional information:

Buildings - Accumulated depreciation as at 30 June 2020: $100,000

Equipment - Accumulated depreciation as at 30 June 2020: $200,000

Aero Ltd calculated the value in use for the division to be $515,000

Required:

Question a) Calculate the impairment loss as at 30 June 2020

Question b) Prepare table as provided below to allocate the above impairment loss