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b. You are a financial advisor to Rio Limited, a travel consultant to the business community. You have been asked to review the following information
b. You are a financial advisor to Rio Limited, a travel consultant to the business community. You have been asked to review the following information to determine if any adjustments need to be made to the financial statements. Required: - advise whether any adjustments are required to 1 and 2. below and if so, prepare the relevant General Journal entries. 1. During the financial year ended 30 June 2020, the company developed a marketing campaign and strategy for a new service, call "The Travel Experts". The costs incurred were $320,000 on salaries and $195,000 in other costs such as web development, market analysis etc. These costs have been capitalised as an intangible asset ('Brands'). (5 marks) 2. You have reviewed Rio's Intangible assets. You have identified an intangible asset - 'Goodwill', has a carrying value at 30 June 2020 of $500,000, which was determined to have suffered an impairment loss of $100,000
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