Asset Group Impairment: The abrasives group of Chemical Products Incorporated (CPI) has been suffering a decline in its business, due to new product introductions by competitors. At 31 December 20X5, the assets of the abrasives cash- generating unit are shown as follows ( in millions) on the company€™s balance sheet:

An impairment test indicates that the fair value of the abrasives cash- generating unit€™s assets is $ 500 million. The assets are not separable€” they must be operated or sold together as a group.

Required:
Prepare an adjusting journal entry to record theimpairment.

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Cost Accumulated Depreciation Net Book Value 800 250 Patent rights160 $1,210 $360 110 140 $610 440 140 20 $600 Equipment Fixtures