Dry Ltd is an entity that specialises in the manufacture of umbrellas and rain jackets. It has aggressively undertaken a strategy of buying out other companies that produced apparel for inclement weather. These companies were liquidated and the assets and liabilities brought into Dry Ltd.

At 30 June 2024, Dry Ltd reported the following assets in its statement of financial position.

In response to competition from overseas, as customers increasingly buy online rather than visit Dry Ltd’s stores, Dry Ltd assessed its impairment position at 30 June 2024. The indicators suggested that an impairment loss was probable. Crossbow Ltd calculated a recoverable amount of its company of $1 420 000.

Required

Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2024.

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Cash Nylon and other inventories Brand 'Drip Dry' $ 20 000 180 000 160 000 Factory at cost 820 000 Accumulated depreciation factory - (120 000) Machinery 640 000 (240 000) Accumulated depreciation machinery Goodwill on acquisition of competing companies 40 000 $1 500 000