The statement of financial position of Corona Ltd shows total assets as at 30 June 2022 which include Cash $87,000, Inventories $65 000, Furniture $57 000, Office Equipment $465 000 (Accumulated depreciation $97 000), Plant $400 000 (Accumulated depreciation $90 000) and Land $7 000.

 

Corona Ltd calculates its assets' the Fair Value less Cost of Disposal and Value in Use are $215,000 and $300,000, respectively.

 

Required:

Determine if the assets of Corona Ltd is impaired and provide the necessary journal entries

Answer rating: 100% (QA)

To determine if the assets of Corona Ltd are impaired we need to compare the carrying value book value of each asset with its recoverable amount The r... View the full answer