Bonita Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under...
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Bonita Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRS. The carrying amounts of the division's assets at December 31, 2017, are as follows: Land:$34,000 Building:64,000 Equipment 43,000 Trucks 25,000 $166,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $154,000, fair value less costs to sell is $121,000, and undiscounted future net cash flows is $190,000. Prepare the journal entry, if any, to record the impairment at December 31, 2017, assuming that the divisions only individual asset that has a determinable recoverable amount is the building, which has a fair value less costs to sell of $60,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round answers to 0 decimal places, e.g. 5,275.)
Bonita Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRS. The carrying amounts of the division's assets at December 31, 2017, are as follows:
Land:$34,000
Building:64,000
Equipment 43,000
Trucks 25,000
$166,000
The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $154,000, fair value less costs to sell is $121,000, and undiscounted future net cash flows is $190,000.
Prepare the journal entry, if any, to record the impairment at December 31, 2017, assuming that the divisions only individual asset that has a determinable recoverable amount is the building, which has a fair value less costs to sell of $60,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round answers to 0 decimal places, e.g. 5,275.)
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