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$20 000Leather and other inventory products180 000Brand 'Crossbow Shoes'160 000Shoe factory at cost820 000Accumulated depreciation - factory(120 000)Machinery for manufacturing shoes640 000Accumulated depreciation machinery(240 000)Goodwill on acquisition of competing companies40 000 $1 500 000

 

Because of the competition from overseas as customers pursue a strategy of buying online rather than visit Crossbow Ltd's 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 $1,420,000.

 

Required

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