Information has been collected regarding Orange Companys cash generating unit that includes goodwill. At 31 December 20X5,
Question:
Information has been collected regarding Orange Company’s cash generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company’s cash generating unit are shown as follows (in millions) on the company’s SFP:
An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $3,600 million. The assets are not separable they must be operated or sold together as a group.
Required:
1. Prepare an adjusting journal entry to record the impairment.
2. If the impairment was reversed, how would the reversal be accounted for among the assets in the cash generating unit?
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Related Book For
Intermediate Accounting Volume 1
ISBN: 9781260306743
7th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
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