Reference no: EM132605506

On 30 June 2020, Sentosa Ltd's tour division showed the following assets.

                                                           $

Buses                                  800,000

Accumulated depreciation      (250,000)

Office equipment                  100,000

Accumulated depreciation      (20,000)

Land                                 1,200,000

Inventory                           60,000

Cash                                   80,000

Goodwill                             30,000

However, due to the COVID-19 pandemic, the tour and travel industry was badly affected. As at 30 June 2020, Sentosa Ltd's tour division was determined to be worth only $1,300,000. The piece of land was appraised to have a fair value less costs to sell of $800,000. Sentosa Ltd allocates the impairment loss in accordance with AASB 136 Impairment.

Required:

Question 1: Prepare the journal entries to account for the impairment loss as at 30 June 2020.