Nourishing Ltd has a business operation that represents a separate cash-generating unit. At 30 June...
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Accounting
Nourishing Ltd has a business operation that represents a separate cash-generating unit. At 30 June 2021, the carrying amounts of the assets of the cash-generating unit, valued pursuant to the cost model, are provided as follows: Assets: $ Cash 15,000 Account receivables 8,000 Land 100,000 Buildings 500,000 Less: accumulated depreciation (100,000) Equipment 200,000 Less: accumulated depreciation (50,000) Inventory 7,000 Goodwill 20,000 The directors of Nourishing Ltd estimate that, at 30 June 2021, the fair value less costs to sell of the cash-generating unit amounts to $620,000, while the value in use is $636,000. The receivables are regarded as collectable and inventory is recorded at lower of cost and net realisable value. The land has a fair value less costs to sell of $95,000. Required: Answer this question in an excel/word file and upload the file when completed. Name your file in your last name and student ID. Determine how Nourishing Ltd should account for the results of the impairment test at 30 June 2021. You are not required to prepare the journal entries. Show all workings and provide explanations to support your answer where necessary..
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