Crossbow Ltd is an entity that specialises in the manufacture of leather footwear for women. It has aggressively undertaken a strategy of buying out other companies that had competing products. These companies were liquidated and the assets and liabilities brought into Crossbow Ltd.

At 30 June 2015, Crossbow Ltd reported the following assets in its statement of financial position:

Cash	$20000
Leather and other inventory products	180000
Brand Crossbow Shoes	160000
Shoe factory at cost	820000
Accumulated depreciation factory	(120000)
Machinery for manufacturing shoes	640000
Accumulated depreciation machinery	(240000)
Goodwill on acquisition of competing companies	40000
	$1500000

Because of the competition from overseas as customers pursue a strategy of buying online rather than visit Crossbow Ltds stores, Crossbow Ltd assessed its impairment position at 30 June 2015. The indicators suggested that an impairment loss was probable. Crossbow Ltd calculated a recoverable amount of its company of $1420000.

Required

Prepare the journal entry(ies) for any impairment loss occurring at 30 June 2015.

(Leo 678)

Leo, Ken, Jeffrey Knapp, Susan McGowan, John Sweeting. Company Accounting 10E, 10th Edition. John Wiley & Sons Australia,. VitalBook file.