Aero Ltd has determined that its aviation division is a cash–generating unit (CGU). Information as at 30th June 2020 is as follows:

$ Buildings – At cost 600,000

Equipment – At cost 500,000

Inventory 25,000

Land 250,000

Receivables 150,000

Goodwill 90,000

Total 1,615,000

Additional information:

Buildings - Accumulated depreciation as at 30 June 2020: $100,000

Equipment - Accumulated depreciation as at 30 June 2020: $200,000

Aero Ltd calculated the value in use for the division to be $515,000

Required:

a) Calculate the impairment loss as at 30 June 2020

b) Prepare a table as provided below to allocate the above impairment loss

Assets	Carrying Amount	Proportion	loss allocated	Adjusted carrying amount
Total

c) Prepare a general journal (as per template below) to record the above impairment loss for the year ended 30 June 2020. Include a narration

General Journal template:

Date	Details	Debit $	Credit $

Answer rating: 100% (QA)

An impairment loss is recognized on the books of the accounts when the Value in use of the assets ar... View the full answer