Corporate Accounting

It ACCGOS T5 2020 Home Insert Draw Design Layout References Mailings Review View Table Design Layout 9 Tell me aShare QComments l l X . . A V A / V [E kl 11 " A A A3\" A0 " zl ll AaBbCeDdEo lAaBchDdEe AaBchDdEe AaBchDdEt , ' V k' V E Heading 2 Normal NormaLTime... Stylel Styles Dictate Sensitivity Pas'eg BIgvabxzx2 AvvAv , Pane Question 4 (10 marks) Green Hornet Ltd is an entity that specialises in the manufacture of darts. It has agressively undertaken a strategy of buying out other companies that had competing products These companies were M and the assets and liabilities brought into Green Hornet Ltd. At 30 June 2020, Green Hornet Ltd reported the following assets in Its statement of financial position: Cash $10 000 Darts and other inventory products 160 000 Brand 'Green Hornet' 150 one Factory at COS' 920 000 Accumulated depreciation factory (220 one) Machinery for manufacturing archery items 740 000 Accumulated depreci ion - machinery (340 000) Goodwill on acquisition of competing companies so 000 $1 500 000 Due to competition from overseas as customers prefer buying online rather than visit Green Hornet Ltd; stores. the company assessed its impairment position at 30 June 2020. The company calculated a recoverable amount of $1 420 000i Required a) Calculate the impairment loss (2 marks) b) Prepare the journal entries for the impairment loss. (8 marks) a) l b) Allocation of im pairment loss: The journal entry to record the impairment loss is: 10 of 16 1667 words '13 English (United States) IE Focus - q) + 95%