Question 4 14 Marks (a) How do you calculate the impairment loss on goodwill in relation to cash-generating units? 3 Marks (b) Colombo Ltd is a business with a number of operating divisions. The following information relates to the printing division which is considered to be a cash generating unit. Assets Carrying amount $ Building 500,000 Equipment (cost $400 000 less accumulated 300,000 depreciation $100 000) Land 250,000 Fittings 150,000 Additional information: The current fair value less costs of disposal (FVLCOD) of the entire unit is $1,188,000. It is determined that the value in use (VIU) of the cash-generating unit, which is calculated at its present value, amounted to $1,150,000. Required: (1) Calculate the impairment loss allocated to each asset and their new carrying amounts after impairment. 8 Marks (11) Provide necessary journal entries for the impairment loss. 3 Marks [3+ 11 = 14 Marks]