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, 2023, are as follows: Land Building Equipment Vehicles $27,000 52,000 32,000 22,000 $133,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $119,700, fair value less costs to sell is $88,000, and undiscounted future net cash flows are $157,000.
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, 2023, are as follows: Land Building Equipment Vehicles $27,000 52,000 32,000 22,000 $133,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $119,700, fair value less costs to sell is $88,000, and undiscounted future net cash flows are $157,000.
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, 2023, are as follows: Land Building Equipment Vehicles $27,000 52,000 32,000 22,000 $133,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $119,700, fair value less costs to sell is $88,000, and undiscounted future net cash flows are $157,000.
Transcribed Image Text: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, 2023, are as follows:
Land
Building
Equipment
Vehicles
(a)
$27,000
52,000
32,000
22,000
The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $119,700, fair value less costs to sell is $88,000, and undiscounted future net cash flows are $157,000.
Date
$133,000
Your answer is correct.
Determine if the cash-generating unit is impaired and prepare the journal entry, if any, to record the impairment at December 31, 2023, assuming that none of the individual assets in the division has a determinable recoverable amount. (Credit a
no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to O decimal places, e.g. 5,275.)
December 31, 2023
Account Titles and Explanation
Loss on Impairment
Accumulated Impairment Losses - Land
Accumulated Impairment Losses - Building
Accumulated Impairment Losses - Equipment
Accumulated Impairment Losses - Vehicles
Debit
13300
IN
Credit
2700
5200
3200
2200
Transcribed Image Text:Prepare the journal entry, if any, to record the impairment at December 31, 2023, assuming that the division's only individual asset that has a determinable recoverable amount is the building, which has a fair value less costs to sell of $48,000. (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 O for the amounts. List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to O decimal places, e.g. 5,275.)
(c)
Date
December 31, 2023
List of Accounts
eTextbook and Media
Account Titles and Explanation
Date
Loss on Impairment
December 31, 2023
Accumulated Impairment Losses - Land
Accumulated Impairment Losses - Building
Accumulated Impairment Losses - Equipment
Accumulated Impairment Losses - Vehicles
Debit
Account Titles and Explanation
13300
WIN
Debit
Credit
3100
Assume that Bonita prepares financial statements under ASPE instead, and that the lawn maintenance division is an asset group. Determine if the asset group is impaired and prepare the journal entry, if any, to record the impairment at December 31, 2023, assuming that none of the individual assets in the division has a determinable
recoverable amount. (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 O for the amounts. List debit entry before credit entry.)
Credit
4000
3674
2526
Attempts: 2 of 3 used
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