Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company's cash-generating unit are shown as follows (in millions) on the company's SFP: Goodwill Equipment Building Patent rights Cost Accumulated Depreciation $ 800 $ 0 Net Book Value $ 800 2,800 4,200 400 $8,200 1,600 1,200 160 $2,960 1,200 3,000 240 $5,240 An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $3,600 million. The assets are not separable-they must be operated or sold together as a group. Required: 1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e. 0.12 should be considered as 12%) and final answers to the nearest whole dollar amount. Enter the amounts in millions.) View transaction list Journal entry worksheet < 1 Record the adjusting entry for impairment of all the assets in the group. >
Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company's cash-generating unit are shown as follows (in millions) on the company's SFP: Goodwill Equipment Building Patent rights Cost Accumulated Depreciation $ 800 $ 0 Net Book Value $ 800 2,800 4,200 400 $8,200 1,600 1,200 160 $2,960 1,200 3,000 240 $5,240 An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $3,600 million. The assets are not separable-they must be operated or sold together as a group. Required: 1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e. 0.12 should be considered as 12%) and final answers to the nearest whole dollar amount. Enter the amounts in millions.) View transaction list Journal entry worksheet < 1 Record the adjusting entry for impairment of all the assets in the group. >
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....
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Question
kau.3
answer must be in table format or i will give down vote
![Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the
assets of the Orange Company's cash-generating unit are shown as follows (in millions) on the company's SFP:
Goodwill
Equipment
Building
Patent rights
Cost
Accumulated
Depreciation
$
800
$ 0
Net Book
Value
$ 800
2,800
4,200
400
$8,200
1,600
1,200
160
$2,960
1,200
3,000
240
$5,240
An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $3,600 million. The assets are not
separable-they must be operated or sold together as a group.
Required:
1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal
entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e. 0.12
should be considered as 12%) and final answers to the nearest whole dollar amount. Enter the amounts in millions.)
View transaction list
Journal entry worksheet
<
1
Record the adjusting entry for impairment of all the assets in the group.
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F464bbac6-15dd-435d-90a0-723f7d79e781%2F8be48624-a7eb-4151-adfc-1fad8596e940%2F6liwk3_processed.png&w=3840&q=75)
Transcribed Image Text:Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the
assets of the Orange Company's cash-generating unit are shown as follows (in millions) on the company's SFP:
Goodwill
Equipment
Building
Patent rights
Cost
Accumulated
Depreciation
$
800
$ 0
Net Book
Value
$ 800
2,800
4,200
400
$8,200
1,600
1,200
160
$2,960
1,200
3,000
240
$5,240
An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $3,600 million. The assets are not
separable-they must be operated or sold together as a group.
Required:
1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal
entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e. 0.12
should be considered as 12%) and final answers to the nearest whole dollar amount. Enter the amounts in millions.)
View transaction list
Journal entry worksheet
<
1
Record the adjusting entry for impairment of all the assets in the group.
>
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