Mesh Itd. has identified an impairment loss of $20 000 on one of its Cash-Generating Units (CUs).

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Mesh Itd. has identified an impairment loss of $20 000 on one of its Cash-Generating Units (CUs). The CGU consists of the following assets (stated at current carrying amounts): Land $350 000 Building $500 000 Equipment $300 000 Fittings. $150 000 The Recoverable Amount of the building is $490,000. 1a Calculate the allocation of the impairment loss against all assets in the CGU. 1b Record the journal entries to account for the impairment loss. 2 An item of depreciable equipment is acquired on 1 July 2018 for $150 000. It is expected to have a useful life of 5 years and a zero residual value, On 1 July 2020, it is decided to revalue the asset to its fair value of $140 000. Provide journal entries to account for the revaluation

Posted Date: May 18, 2024 04:05 AM

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Mesh Itd. has identified an impairment loss of $20 000 on one of its Cash-Generating Units (CUs).

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