The merger between Northcorp and Carnation resulted in large losses for Northcorp resulting in a $642.5 million write-down of goodwill and a $240 million write-down of the value of the Carnation brand. Also the company recorded a $95 million in one-off provisions and restructuring costs. 

1. Using the definition of an asset, explain why the assets discussed within this extract would be written down. 

2. What accounting concepts would have been considered when determining the write-down of assets? 

3. Using the definition of a liability, explain why the provision discussed within this extract may have been created. 

4. Show the effect on profit of each of the amounts of $642.5 million, $240 million and $95 million. What other accounts would be affected? 

5. Provide possible journal entries for the items in question 4.