Charleston Ltd is in the business of manufacturing childrens toys. Its operations are carried out through three operating divisions, namely the Merlin Division, the Hollow Division and the Hills Division. These divisions are separate CGUs. In accounting for any impairment losses, all central management assets are allocated to each of these divisions.

At 30 June 2022, the assets allocated to each division were as follows.

	Merlin CGU	Hollow CGU	Hills CGU
Buildings	$ 656,000	$ 600,000	$ 368,000
Accumulated depreciation buildings	(336,000)	(304,000)	(272,000)
Land	160,000	240,000	120,000
Machinery	240,000	328,000	448,000
Accumulated depreciation machinery	(48,000)	(256,000)	(248,000)
Inventory	96,000	64,000	80,000
Goodwill	32,000	40,000	24,000

Charleston Ltd also had head office assets totalling $370,000. These corporate assets are to be allocated to each CGU based on the following ratio: Merlin 40%; Hollow 35%; Hills 25%

In relation to land values, the land relating to the Merlin and Hills Divisions have carrying amounts less than their fair values as stand-alone assets. The land held by the Hollow Division has a fair value less costs of disposal of $234,000.

Charleston Ltd determined the recoverable amount of each of the CGUs at 31 July 2022 as follows: Merlin $880,000; Hollow $720,500; Hills $640,000.

Required:

Prepare the journal entries for Charleston Ltd to record any impairment loss at 30 June 2022. Show all calculations