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Pearl Landscaping Limited has determined that its lawn maintenal as follows: Land Building Equipment Vehicles $39,000 68,000 45,000 33,000 $185,000

Pearl Landscaping Limited has determined that its lawn maintenal as follows: Land Building Equipment Vehicles $39,000 68,000 45,000 33,000 $185,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Munabhai 

Pearl 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) $39,000 68,000 45,000 33,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value use is $166,500, fair value less costs to sell is $140,000, and undiscounted future net cash flows are $209,000. Date $185,000 Your answer is partially 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 0 for the amounts. List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) December 31, 2023 Account Titles and Explanation Loss on Impairment Buildings Accumulated Impairment Losses - Building Accumulated Impairment Losses - Equipment Land Debit Credit TRUCO
Transcribed Image Text:Pearl 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) $39,000 68,000 45,000 33,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value use is $166,500, fair value less costs to sell is $140,000, and undiscounted future net cash flows are $209,000. Date $185,000 Your answer is partially 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 0 for the amounts. List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) December 31, 2023 Account Titles and Explanation Loss on Impairment Buildings Accumulated Impairment Losses - Building Accumulated Impairment Losses - Equipment Land Debit Credit TRUCO
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