At 30 June 2021, Sanji Ltd reported the following cash-generating unit: Land Building Accumulated Depreciation Goodwill 400,000 650,000 (150,000) 40,000 All items of property, plant and equipment are measured using the cost model. At 30 June 2021, the recoverable amount of the cash-generating unit was $891 000. For the period ending 30 June 2022, the depreciation charge on building was $47 000. If the building had not been impaired the charge would have been $50 000. At 30 June 2022, the recoverable amount of the unit was calculated to be $5 500 greater than the carrying amount of the assets of the unit. As a result, Sanji Ltd recognized a reversal of the previous year's impairment loss. Required: Prepare the journal entries relating to impairment at 30 June 2021 and 30 June 2022. Note: You are required to show all workings and round up to the nearest dollar. Narrations are not required.

At 30 June 2021, Sanji Ltd reported the following cash-generating unit: Land Building Accumulated Depreciation Goodwill 400,000 650,000 (150,000) 40,000 All items of property, plant and equipment are measured using the cost model. At 30 June 2021, the recoverable amount of the cash-generating unit was $891 000. For the period ending 30 June 2022, the depreciation charge on building was $47 000. If the building had not been impaired the charge would have been $50 000. At 30 June 2022, the recoverable amount of the unit was calculated to be $5 500 greater than the carrying amount of the assets of the unit. As a result, Sanji Ltd recognized a reversal of the previous year's impairment loss. Required: Prepare the journal entries relating to impairment at 30 June 2021 and 30 June 2022. Note: You are required to show all workings and round up to the nearest dollar. Narrations are not required.

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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