snt Sun Ltd reported the following assets in its statement of financial position at 30 June 2015:

                  Plant                                                   $2,300,000

                  Accumulated depreciation                   (600,000)

                  Land                                                        550,000

                  Franchise license                                   300,000

                  Equipment                                              900,000

                  Accumulated depreciation                   (340,000)

                  Inventory                                                 220,000

                  Cash and cash equivalents                     180,000

                                                                              $3,510,000

The recoverable amount of the entity was calculated to be $2,900,000. The fair value less costs of disposal of the land was $388,000.

 

The journal entry to record the impairment loss of the cash generating unit at 30 June 2015 is as follows:

Dr. Impairment loss expense  XXX

      Cr. Accumulated depreciation - Plant  YYY

      Cr. Land     AAA

      Cr. Accumulated amortisation - License     BBB

      Cr. Accumulated depreciation – Equipment   CCC

1.What is the amount of YYY? (Answer includes the effect of second-time impairment loss from Land)

2. Impairment of land

3.Second time impairment of loss re-appointment between the remaining non-current asset.

SuperTutor

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Status NEW Posted 01 Jun 2017 05:06 AM My Price 8.00

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