At 30 June 2020, White Ltd reported thefollowing cash-generating unit, with thecarrying amount totaling $530,000:Land200,000Equipment600,000Accumulated(300,000)depreciation -EquipmentGoodwill30,000All items of property, plant and equipmentare measured using the cost model. At 30June 2020, the recoverable amount of thecash-generating unit was $480,000.For the period ending 30 June 2021, thedepreciation charge on the equipment was$38,000. If the equipment had not beenimpaired the charge would have been$41,000.At 30 June 2021, the recoverable amount ofthe unit was calculated to be $15,000greater than the carrying amount of theassets of the unit. As a result, White Ltdrecognized a reversal of the previous year'simpairment loss.Required:Prepare the journal entries relating toimpairment at 30 June 2020 andimpairment reversal at 30 June 2021.

Goodwill- Goodwill is an intangible asset produced from a company's value above and beyond its net…

At 30 June 2020, White Ltd reported the following cash-generating unit, with the carrying amount totaling $530,000: Land 200,000 Equipment 600,000 Accumulated (300,000) depreciation - Equipment Goodwill 30,000 All items of property, plant and equipment

At 30 June 2020, White Ltd reported the following cash-generating unit, with the carrying amount totaling $530,000: Land 200,000 Equipment 600,000 Accumulated (300,000) depreciation - Equipment Goodwill 30,000 All items of property, plant and equipment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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am.107.
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