t the beginning of current year, Jazz Company has an The toy train division is regarded as a cash generating unit. The management measured the value in use of the toy train There is a declining interest in toy train because of the Amounts of the assets of the toy train division were: division at the current year-end at P3,600,000. The carrying operating division whose major industry is the manufacture sggressive marketing of computer-based toys. At of toy train. Building Iaventory Trademark Goodwill 2,000,000 1,500,000 1,000,000 500,000 Required: 1. Determine the amount of impairment loss. 2. Allocate the impairment loss to the assets of the cash generating unit. 3. Prepare journal entry to record the impairment loss.

t the beginning of current year, Jazz Company has an The toy train division is regarded as a cash generating unit. The management measured the value in use of the toy train There is a declining interest in toy train because of the Amounts of the assets of the toy train division were: division at the current year-end at P3,600,000. The carrying operating division whose major industry is the manufacture sggressive marketing of computer-based toys. At of toy train. Building Iaventory Trademark Goodwill 2,000,000 1,500,000 1,000,000 500,000 Required: 1. Determine the amount of impairment loss. 2. Allocate the impairment loss to the assets of the cash generating unit. 3. Prepare journal entry to record the impairment loss.

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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