Coronado 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, 2020, are as follows:Land $26,000Building 58,000Equipment 34,000Vehicles 16,000 $134,000The lawn maintenance division has been assessed for impairment and it is determined that the division’s value in use is $120,600, fair value less costs to sell is $89,000, and undiscounted future net cash flows are $158,000.B v (b)Prepare the journal entry, if any, to record the impairment at December 31, 2020, 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 $54,000. (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 0 for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.)DateAccount Titles and ExplanationDebitCreditDecember 31, 2020Attempts: 0 of 1 usedSAVE FOR LATERSUBMIT ANSWER

Impairment of assets is the test done by the management to get assures that the assets do not…

Coronado 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, 2020, are as follows: Land $26,000 Building 58,000 Equipment 34,000 Vehicles 16,000 $134,000 The lawn maintenance division has been assessed for impairment and it is determined that the division’s value in use is $120,600, fair value less costs to sell is $89,000, and undiscounted future net cash flows are $158,000.

Coronado 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, 2020, are as follows: Land $26,000 Building 58,000 Equipment 34,000 Vehicles 16,000 $134,000 The lawn maintenance division has been assessed for impairment and it is determined that the division’s value in use is $120,600, fair value less costs to sell is $89,000, and undiscounted future net cash flows are $158,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 15E: The following are independent errors: a. In January 2019, repair costs of 9,000 were debited to the...

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