Question: 12 Marks Question 4 (a) When do you think an entity should conduct an impairment test for non-current assets? 3. Marks (6) Prince Chemical Ltd

12 Marks Question 4 (a) When do you think an entity should conduct an impairment test for non-current assets? 3. Marks (6) Prince Chemical Ltd has determined that its cash-generating unit has assets with the following carrying amounts: Building Plant Showroom Goodwill S600,000 $800,000 $320,000 $240.000 $1.960.000 Prince Chemical Ltd measure the value in use of the cash-generating unit, which is calculated at its present value, amounted to $1,560,000. The current fair value less costs to sell of the entire unit is $1,400,000. Required: (1) Calculate the impairment loss 2 Marks Allocate the impairment loss to each asset and their net carrying amounts after impairment. 4 Marks (iii) Provide journal entries for the impairment 1033. 3 Marks 13-9 = 12 Marks 10 1844 Words D English India Tune he

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