Question 2 Smart Robots Lid is started a company to undertake research and development of a new type of Robots. For this research and development (R & D) it has incurred the following expenditure in June 2020: Paymen Transaction Amount t status a) Obtaining a general understanding of Robot dynamics $250,000 Paid b) Understanding what local customers expect from a Robot in manufacturing sector $150,000 Incurred c) Testing and refining a certain type of Robot $450,000 Incurred d) Developing and testing a full prototype of the Robot, to be called the 'Rob King'. $950,000 Incurred e) Marketing of the Robot $600,000 Paid It is expected that there is a large market for the Robots, which will generate millions of dollars in revenue On 1 July 2020 Sydney Smart Robots acquired Al Robots Lid for cash of $13,000,000. At that date, Al Robot's net identifiable assets had a fair value of $17,400,000. The fair value of the net identifiable assets of Al Robots Lid are determined as follows: Customer list $150,000 Machinery $4,350,000 Buildings $4,500,000 Land $9,000,000 $18,000,000 Less: Bank loan $600,000 Net assets $17,400,000 At the end of the reporting period of 30 June 2020, Smart Robots determines that the recoverable amount of the cash-generating unit, which is considered to be Al Robot Lid, totals $13,000,000. The carrying amount of the net identifiable assets of Al Robot Lid, which excludes goodwill, has not changed since acquisition and is $17,400,000. REQUIRED: 1. Prepare journal entries for each transaction from a to e above. (5 marks) 2. Calculate the amount for impairment of goodwill as at 30 June 2020. Show all workings