Annood Company owns land that it purchased at a cost of $700,000 in 2018. The land'srecoverable value fluctuate as follows (all amounts as of December 31): 2018, $680,000;2019, $720,000. The journal entry to record impairment of the land in 2019 would be:a. Debit land account, $20,000, credit impairment loss recovery, $20,000O b. Debit impairment loss account, $20,000; credit land account, $20,000O c. Debit land account, 40,000; credit impairment loss recovery, $40,000O d. No entry is required under IFRS 36.

Impairment: Impairment is the sudden loss in the value of an asset other than depreciation for…

Annood Company owns land that it purchased at a cost of $700,000 in 2018. The land's recoverable value fluctuate as follows (all amounts as of December 31): 2018, $680,000%3; 2019, $720,000. The journal entry to record impairment of the land in 2019 would be:

Annood Company owns land that it purchased at a cost of $700,000 in 2018. The land's recoverable value fluctuate as follows (all amounts as of December 31): 2018, $680,000%3; 2019, $720,000. The journal entry to record impairment of the land in 2019 would be:

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Annood Company owns land that it purchased at a cost of $700,000 in 2018. The land's
recoverable value fluctuate as follows (all amounts as of December 31): 2018, $680,000;
2019, $720,000. The journal entry to record impairment of the land in 2019 would be:
a. Debit land account, $20,000, credit impairment loss recovery, $20,000
O b. Debit impairment loss account, $20,000; credit land account, $20,000
O c. Debit land account, 40,000; credit impairment loss recovery, $40,000
O d. No entry is required under IFRS 36.

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