Corporate Accounting

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 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

b. 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

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 $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