Acc222Q.23

(10 marks) On 1 July 2019 Charlie Ltd acquired all the assets of Miami Ltd. It was decided that Miami Ltd is a Cash Generating Unit in its own right. At 30 June 2020, the carrying amounts of the assets for Miami Ltd, including the goodwill that was recognised upon acquisition, were as follows: Plant 90,000 Accumulated depreciation - plant (35,000) Motor vehicles 62,000 Accumulated depreciation - Motor vehicles (24,500) Inventory 20,000 Cash 10,500 Goodwill 7,000 Miami Ltd undertook impairment testing at 30 June 2020 and determined that the value in use of Miami Ltd to be $118,000. The inventory was recorded at lower of cost and net realisable value. The plant had a fair value less costs to sell of $52,250. Required: Answer this question in an excel/word file and upload the file when completed. Name your file in your last name and student ID. Provide the journal entries to account for the impairment loss for Miami Lid for the year ended 30 June 2020. It is essential to show all your workings and explain your answers where necessary. 2:11 PM