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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.

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 12P: Strickler Technology is considering changes in its working capital policies to improve its cash flow...
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sggressive marketing of computer-based toys. There is a declining interest in toy train because of the division at the current year-end at P3,600,000. The carrying The toy train division is regarded as a cash generating unit. The management measured the value in use of the toy train Amounts of the assets of the toy train division were: operating division whose major industry is the manufacture At the beginning of current year, Jazz Company has an of toy train. Building Inventory 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.
Transcribed Image Text:sggressive marketing of computer-based toys. There is a declining interest in toy train because of the division at the current year-end at P3,600,000. The carrying The toy train division is regarded as a cash generating unit. The management measured the value in use of the toy train Amounts of the assets of the toy train division were: operating division whose major industry is the manufacture At the beginning of current year, Jazz Company has an of toy train. Building Inventory 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.
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