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.
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 2STP
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