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MNO Ltd conducted an impairment test of one of its cash generating units (CGU) at...

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Accounting

MNO Ltd conducted an impairment test of one of its cash generating units (CGU) at 30
June 20X0. The test determined that the recoverable amount of the entire CGU was
$70,000. The carrying amounts of the assets of the entity at 30 June 200 both before
and after impairment were:
The following year, at 30 June 201 the recoverable amount of the CGU was estimated to
be $4,000 greater than the carrying amount of the CGU at that date. As a result, MNO
Ltd recognised a reversal of the previous year's impairment loss.
Depreciation expense related to motor vehicles for the year ended 30 June 20X1 was
$5,000. If motor vehicles had not been impaired, depreciation expense would have been
$10,000. Patent is not amortised.
Required
Prepare the journal entry to account for the reversal of the impairment loss at 30 June
201.
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