1 July 2016, Shrek Ltd acquired all the assets and liabilities of Beast Ltd. Beast Ltd has a number of operating divisions, including a frozen pizza division that manufactures frozen pizzas for family dinners. The pizza division is regarded as a separate cash-generating unit. In paying $1,200,000 for the net assets of Beast Ltd, Shrek Ltd calculated that it had acquired goodwill of $240,000. The goodwill was allocated to each of the operating divisions, and the assets and liabilities were measured at fair value at acquisition date.

On 1 July 2016, Shrek Ltd acquired all the assets and liabilities of Beast Ltd. Beast Ltd has a number of operating divisions, including a frozen pizza division that manufactures frozen pizzas for family dinners. The pizza division is regarded as a separate cash-generating unit. In paying $1,200,000 for the net assets of Beast Ltd, Shrek Ltd calculated that it had acquired goodwill of $240,000. The goodwill was allocated to each of the operating divisions, and the assets and liabilities were measured at fair value at acquisition date. At 30 June 2017, the carrying amounts of the assets of the pizza division were: Plant and Equipment Inventory Brand-Moreish' $400,000 $200,000 $200,000 $90,000 Goodwill There is a declining interest in Beast Ltd's frozen pizzas due to a concern for the healthy eating, so the management of Shrek Ltd measured the recoverable amount of the pizza division at 30 June 2017 determining it to be $740,000. Inventory is measured at the lower of cost and net realisable value in accordance with AASB102 Inventories' Required: Prepare all journal entries to account for the impairment loss at 30 June 2017, assuming that the fair value less cost of disposal of the plant and equipment is $362,000. You are required to show all workings and round up to the nearest dollar. Narrations are NOT required