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Assignment Student Name: Student ID: Question 1 A division of a company has the following balances in its financial statements: Goodwill $ 9 0 0

Assignment
Student Name: Student ID:
Question 1
A division of a company has the following balances in its financial statements:
Goodwill $900,000
Plant $800,000
Property $2,200,000
Intangibles $600,000
Other net assets $550,000
Following a period of losses, the recoverable amount of the division is deemed to be $4 million. A recent valuation of the building showed that the building has a market value of $2.5 million. The other net assets are at their recoverable amount. The company uses the cost model for valuing property, plant and equipment.
To the nearest thousand, what is the balance following the impairment review?
Carrying amount Impairment After impairment
Goodwill $900,000
Plant $800,000
Property $2,200,000
Intangibles $600,000
Other net assets $550,000
Total 5,050,000
Impairment= carrying amount- recoverable amount
Remaining balance of impairment after goodwill=
Plant=
Intangibles=
Question 2
Company A entered into a 2-year lease of an administration building with the following lease payments, payable at the end of each year:
$ 50,000 for the first year;
$ 90,000 for the second year; and
The interest rate is 10%.
Required: prepare the journal entry for today and the first year of the lease.

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