At 30 June 2022, Boxes Ltd reported the following assets. Land $100 000 Plant $500 000...

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At 30 June 2022, Boxes Ltd reported the following assets. Land $100 000 Plant $500 000 Accumulated Depreciation (100 000) Goodwill 16 000 Inventories 80 000 Cash 4 000 All assets are measured using the cost model. At 30 June 2022, the recoverable amount of the entity, considered to be a single CGU, was $544 000. For the period ending 30 June 2023, the depreciation charge on plant was $36 800. If the plant had not been impaired the charge would have been $50 000.. At 30 June 2023, the recoverable amount of the entity was calculated to be $26 000 greater than the carrying amount of the assets of the entity. As a result, Boxes Ltd recognised a reversal of the previous year's impairment loss. The journal entry relating to impairment reversal is O a. Reversal of impairment is not allowed Ob. Accum. impairment losses - Land Dr 5 652 Accum. deprec. & impairment losses - Plant Dr 20 348 Income - reversal of impairment loss Cr 26 000 Accum. impairment losses - Land Dr 8 000 Accum. deprec. & impairment losses - Plant Dr 18 000 Income - reversal of impairment loss Cr 26 000 d. Accum. impairment losses - Land Dr 7 200 Accum. deprec. & impairment losses - Plant Dr 18 800 Income - reversal of impairment loss Cr 26 000 At 30 June 2022, Boxes Ltd reported the following assets. Land $100 000 Plant $500 000 Accumulated Depreciation (100 000) Goodwill 16 000 Inventories 80 000 Cash 4 000 All assets are measured using the cost model. At 30 June 2022, the recoverable amount of the entity, considered to be a single CGU, was $544 000. For the period ending 30 June 2023, the depreciation charge on plant was $36 800. If the plant had not been impaired the charge would have been $50 000.. At 30 June 2023, the recoverable amount of the entity was calculated to be $26 000 greater than the carrying amount of the assets of the entity. As a result, Boxes Ltd recognised a reversal of the previous year's impairment loss. The journal entry relating to impairment reversal is O a. Reversal of impairment is not allowed Ob. Accum. impairment losses - Land Dr 5 652 Accum. deprec. & impairment losses - Plant Dr 20 348 Income - reversal of impairment loss Cr 26 000 Accum. impairment losses - Land Dr 8 000 Accum. deprec. & impairment losses - Plant Dr 18 000 Income - reversal of impairment loss Cr 26 000 d. Accum. impairment losses - Land Dr 7 200 Accum. deprec. & impairment losses - Plant Dr 18 800 Income - reversal of impairment loss Cr 26 000

Answer rating: 100% (QA)

d Accum impairment losses Land Dr 7 200 Accum deprec impairment losses Plant Dr 18 800 Income revers... View the full answer