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 58,000 34,000 Building Equipment 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. v (a) Determine if the cash-generating unit is impaired and prepare the journal entry, if any, to record the impairment at December 31, 2020, 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 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

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 58,000 34,000 Building Equipment 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. v (a) Determine if the cash-generating unit is impaired and prepare the journal entry, if any, to record the impairment at December 31, 2020, 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 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

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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 cash flows are $158,000.
v (a)
Determine if the cash-generating unit is impaired and prepare the journal entry, if any, to record the impairment at December 31, 2020, 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. 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

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