14. Ben Ltd determined that its Singapore division is a cash-generating unit. The carrying amounts of the assets at 30 June 2019 are as follows;

Building	$350,000
Land	250,000
Patent	25,000
Goodwill	40,000
Inventory	10,000

The journal entry to record impairment loss:

Select one:

a. Dr Impairment loss $150,000, Cr Accumulated impairment loss Building $61,600, Cr Land $44,000 , Cr Accumulated amortization and impairment loss-Brand $4,400, Cr Goodwill $40,000

b. Dr Accumulated impairment loss Factory $61,875, Dr Land $41,250, Dr Accumulated amortization and impairment loss-Brand $6,875, Dr Goodwill $60,000 , Cr Impairment loss $170,000

c. Dr Accumulated impairment loss Factory $56,250, Dr Land $37,500 , Dr Accumulated amortization and impairment loss-Brand $6,250 , Dr Inventory $10,000 , Dr Goodwill $60,000 , Cr Impairment loss $170,000

d. Dr Impairment loss $170,000, Cr Accumulated impairment loss Factory $56,250, Cr Land $37,500 , Cr Accumulated amortization and impairment loss-Brand $6,250 , Cr Inventory $10,000 , Cr Goodwill $60,000

11. On 1 July 2019, Homes Company leased a vehicle from Den Company. The vehicle cost Den $39,654.60 considered to be its fair value on that same day. The finance lease agreement contained the following provisions:

• The lease term is 3 years, starting on 1 July 2019.
• Estimated useful life the Vehicle is 5 years.
• Annual lease Payment, payable on 30 June each year is $12,000
• Estimated Residual Value of the vehicle at the end of the lease is $10,000.
• Residual Value Guaranteed by Company Homes is 6,000.
• Interest rate implicit in the lease is 7%.
• Present value of an annuity: PVIFA (T3, 7%, 3Y) = 2.6243
• Present value of $1: PVIF (T1, 7%, 3Y) = 0.8163

The PV of the lease payment by company Homes (lessee) at 1 July 2019 will be:

Select one:

a. $37,389.40

b. $39,654.40

c. $36,389.40

d. $33,589.40

12. On 1 July 2020, Alpha Ltd leased a vehicle from Beta Company. The vehicle cost Beta Company $39,654.60 considered to be its fair value on that same day. However, the PV of the lease payment by Alpha Ltd at 1 July 2020 $36,389.40

Required journal entries for the Company Beta (lessor) at 01 July 2020?

Select one:

a. Dr Right to use of asset (Motor vehicle) $36,389.40 Cr Lease liability $36,389.40

b. Dr Lease receivables $39,654.60 - Cr Motor vehicle $39,654.60

c. Dr Lease receivables $36,389.40 - Cr Motor vehicle $36,389.40

d. Dr Right to use of asset (Motor vehicle) $39,654.60 Cr Lease liability $39,654.60