Item4

10points

Return to question

Item 4

Information has been collected regarding Orange Companys cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Companys cash-generating unit are shown as follows (in millions) on the companys SFP:

	Cost			Accumulated Depreciation					Net Book Value
Goodwill	$	1,140			$	0				$	1,140
Equipment		3,950				2,730					1,220
Building		5,950				2,040					3,910
Patent rights		1,240				270					970
	$	12,280			$	5,040				$	7,240

An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $5,100 million. The assets are not separablethey must be operated or sold together as a group. Required: 1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e. 0.12 should be considered as 12%) and final answers to the nearest whole dollar amount. Enter the amounts in millions.)

2. This part of the question is not part of your Connect assignment.