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Provide the journal entry required in this situation

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Question - Caledonian Construction Ltd has determined that its truss manufacturing division is a cash-generating unit. The carrying amounts of the assets as at 30 June 2021 are as follows:

$

Factory 400,000

Land 300,000

Equipment 200,000

Inventory 100,000

Goodwill 20,000

Caledonian Construction Ltd calculated the value-in-use of the division to be $955,000.

Required - Provide the journal entry required in this situation under AASB136 Impairment of Assets, assuming the fair value less costs to sell of the land is $280,000 and Caledonian Construction Ltd carries inventory at the lower of cost and net realizable value. Show all workings as marks are awarded for workings. A template has been provided for the allocation of any loss. Exclude journal narrations.

Reference no: EM133058259

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