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The following were financial information of Smart Sdn Bhdfor the year 2020.

	Asset X RM	Asset Y RM	Asset Z RM
Fair value less cost to sell	970,000	1,600,000	3,600,000
Value in use	1,100,000	1,300,000	4,300,000
Cost	1,350,000	1,980,000	4,980,000
Accumulated depreciation	80,000	100,000	90,000

Required:

i. Determine the impairment loss of Asset X, Asset Y and Asset Z.

(8 marks)

ii. Show journal entries to record the impairment loss for each of the assets.

(4 marks)

iii.Prepare the (extract) Statement of Comprehensive Income for the year ended 31 December 2020.

(4 marks)

iv. Prepare the (extract) Statement of Financial Position as at 31 December 2020.

(14 marks)

STRUCTURED QUESTIONS [TOTAL = 50 MARKS] Answer ALL questions. QUESTION 1 (30 MARKS) The following were financial information of Smart Sdn Bhd for the year 2020 Asset X Asset Y Asset Z RM RM RM Fair value less cost to sell 970,000 1,600,000 3.600,000 Value in use 1.100.000 1,300,000|4,300,000 Cost 1,350,000 1,980,000 4,980,000 Accumulated depreciation 80,000 100.000 90.000 Required: Determine the impairment loss of Asset X, Asset Y and Asset z. (8 marks) Show journal entries to record the impairment loss for each of the assets. (4 marks) iii. Prepare the (extract) Statement of Comprehensive Income for the year ended 31 December 2020. (4 marks) iv. Prepare the (extract) Statement of Financial Position as at 31 December 2020. (14 marks)

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