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.) Account Titles and Explanation Date December 31, 2023 Debit Credit
Please answer the following question
Must choose from the following LIST OF ACCOUNTS:
Accumulated Depletion
Accumulated Depreciation - Buildings
Accumulated Depreciation - Equipment
Accumulated Depreciation - Furniture and Fixtures
Accumulated Depreciation - Machinery
Accumulated Depreciation - Vehicles
Accumulated Impairment Losses - Building
Accumulated Impairment Losses - Equipment
Accumulated Impairment Losses - Land
Accumulated Impairment Losses - Machinery
Accumulated Impairment Losses - Mine
Accumulated Impairment Losses - Patents
Accumulated Impairment Losses - Tools and Dies
Accumulated Impairment Losses - Vehicles
Asset Retirement Obligation
Buildings
Cash
Common Shares
Contribution Expense
Cost of Goods Sold
Deferred Revenue - Government Grants
Depreciation Expense
Equipment
Furniture and Fixtures
Gain on Disposal of Automobiles
Gain on Disposal of Building
Gain on Disposal of Equipment
Gain on Disposal of Furniture and Fixtures
Gain on Disposal of Machinery
Gain on Disposal of Vehicles
Gain on Sale of Land
Interest Expense
Interest Pavable
Inventory
Investment Property
Land
Liability for Site Restoration
Loss on Disposal of Automobiles
Loss on Disposal of Building
Loss on Disposal of Equipment
Loss on Disposal of Machinery
Loss on Disposal of Vehicles
Loss on Expropriation
Loss on Impairment
Loss on Sale of Land
Machinery
Mineral Resources
No Entry
Notes Payable
Oil Property
Recovery of Loss from Impairment
Repairs and Maintenance Expense
Revaluation Surplus (OCI)
Revenue - Government Grants
Royalty Expense
Vehicles
![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
Credit
2700
5200
3200
2200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F422a3402-f0e9-4c20-b89e-5230245172a8%2Fc3fe76fd-6d20-4100-bcfa-01eeb8cc8d75%2Faiqz7fr_processed.png&w=3840&q=75)
![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
Account Titles and Explanation
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F422a3402-f0e9-4c20-b89e-5230245172a8%2Fc3fe76fd-6d20-4100-bcfa-01eeb8cc8d75%2F56haiqo_processed.png&w=3840&q=75)
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