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: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.)
Date
December
31, 2023
(c)
Account Titles and Explanation
Loss on Impairment
Date
Accumulated Impairment Losses - Land
December
31, 2023
Accumulated Impairment Losses - Building
Accumulated Impairment Losses - Equipment
eTextbook and Media
Accumulated Impairment Losses - Vehicles
List of Accounts
Debit
Account Titles and Explanation
13300
III
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.)
4000
Credit
3674
2526
Attempts: 2 of 3 used
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
Date
32,000
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.
December
31, 2023
22,000
$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 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.)
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
III
Credit
2700
5200
3200
2200
Video Video
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