A company has the following assets in a CGU: Land: $650,000 Building: $1,118,000...
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A company has the following assets in a CGU: Land: $650,000 Building: $1,118,000 Equipment: $832,000 Assume that due to a change in the competitive environment, the fair value less costs of disposal of the CGU is now estimated to be $2,340,000. The present value of future cash flows is estimated to be $2,300,000. Assume that the fair value of the land has been determined to be $600,000. Required: Prepare the journal entry to record the impairment under IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No journal entry required Accumulated depreciation Accumulated depreciation - body Accumulated depreciation - chassis Accumulated depreciation - engine Accumulated depreciation - exterior frame Accumulated depreciation - interior components Accumulated depreciation - other Accumulated depreciation - wheels Building Cash Depreciation expense Equipment Gain on sale Impairment loss reversal
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