Question: ABC ltd has a printing process comprising four separates but highly interdependent assets.The printing machinery has a combined carrying value of $1000000 made up as

ABC ltd has a printing process comprising four separates but highly interdependent assets.The printing machinery has a combined carrying value of $1000000 made up as follow :

buliding $120000

equipment $250000,

land $320000

Fittings $310000

total cash generating unit $1000000

It was determined that the value in use of cash generating unit,which is calculated as its present value,amount to $820000.The current fair value less costs to sell the entire unit is $65000.

a. calculate and record the allocation of impairment loss against all assets.

b.preapre journal entries to record the impairment loss

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