Reference no: EM132496903

Aero Ltd has determined that its aviation division is a cash-generating unit (CGU). Information as at 30th June 2020 is as follows:

Buildings - At cost 600,000

Equipment - At cost 500,000

Inventory 25,000

Land 250,000

Receivables 150,000

Goodwill 90,000

Total 1,615,000

Additional information:

1. Buildings - Accumulated depreciation as at 30 June 2020: $100,000
2. Equipment - Accumulated depreciation as at 30 June 2020: $200,000
3. Aero Ltd calculated the value in use for the division to be $515,000

Required:

Question a) Calculate the impairment loss as at 30 June 2020:

Question b) Prepare a table as provided below to allocate the above impairment loss:

ASSETS Carrying amount Proportion Loss allocated Adjusted carrying amount Totals

Question (c) Prepare a general journal (as per template below) to record the above impairment loss for the year ended 30 June 2020. Include a narration General Journal template: Date Details Debit ($) Credit ($)