Coronado 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, 2020, are as follows: Land $26,000 Building 58,000 Equipment 34,000 Vehicles 16,000 $134,000 The lawn maintenance division has been assessed for impairment and it is determined that the division’s value in use is $120,600, fair value less costs to sell is $89,000, and undiscounted future net cash flows are $158,000.
Coronado 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, 2020, are as follows: Land $26,000 Building 58,000 Equipment 34,000 Vehicles 16,000 $134,000 The lawn maintenance division has been assessed for impairment and it is determined that the division’s value in use is $120,600, fair value less costs to sell is $89,000, and undiscounted future net cash flows are $158,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Coronado 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, 2020, are as follows:
| Land | $26,000 | |
| Building | 58,000 | |
| Equipment | 34,000 | |
| Vehicles | 16,000 | |
| $134,000 |
The lawn maintenance division has been assessed for impairment and it is determined that the division’s value in use is $120,600, fair value less costs to sell is $89,000, and undiscounted future net
B
Transcribed Image Text:v (b)
Prepare the journal entry, if any, to record the impairment at December 31, 2020, 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 $54,000. (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 0 for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.)
Date
Account Titles and Explanation
Debit
Credit
December 31, 2020
Attempts: 0 of 1 used
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