Reference no: EM132672277

Archer Ltd reported the following information in its statement of financial position at 30 June 2020. At 30 June 2020, Archer 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. Archer Ltd calculated the recoverable amount of the assets to be $840 000. The fair value less costs of disposal of the land was $223,488

land $560,000

Accumulated depreciation - plant (130,000)

Intangible assets 260,000

Accumulated amortisation (90,000)

Land 260,000

Total non-current assets 860,000

Cash50,000

Inventories 150,000

Total current assets 200,000

Total assets 1,060,000

Liabilities 130,000

Net assets 930,000

Required

Problem A. Calculate the impairment loss

Problem B. Allocate the impairment loss to the different assets

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