Dark Ltd acquired a taxi business on 1 January 2018 for $1,600,000. The value of the assets of the business at that date, based on fair value less cost to disposal, were as follows:

Office building 1,000,000 Taxi vehicles 480,000 Taxi license 120,000 Trade receivables (net) 40,000 Cash 20,000 Trade payables 80,000

The taxi business was considered to be a cash-generating unit after the acquisition. The estimated useful life of all taxi vehicles was 5 years and that of the office building was 10 years from 1 January 2018. St raightline depreciation was used by Dark Ltd for all of its tangible assets. All tangible assets were assumed to have zero residual value. On 1 February 2018, this cash-generating unit had two taxi vehicles stolen. The fair value less cost to disposal of these taxi vehicles was $120,000. As a result of this, Dark Ltd wanted to recognize an impairment loss of $180,000 (inclusive of the stolen vehicles) due to the decline in the value in use of the cash-generating unit. The market price of the office building was $1,050,000 on 1 February 2018.

a Determine the goodwill acquired on 1 January 2018.

b Prepare accounting journal entries to record the impairment of the cash-generating unit on 1 February 2018. Show your workings.

c Should the following be classified as held for sale or discontin ued operations? Explain your rationale in detail.

i Dark Ltd is committed to a plan to sell its staff quarters and has engaged a property agent to locate a buyer. Dark Ltd's employees will use the staff quarters until the completion of the new staff quarters in six months' time. The old staff quarters can be transferred to the buyer when all employees move out.

ii Dark Ltd has been using two factories to manufacture traditional light bulbs. An increasing demand for LED lights has caused a significant drop in sales of the light bulbs. Dark Ltd has decid ed to move all the production facilities to one of the factories but keep the empty factory in the hope that the demand for traditional light bulbs may go back up in the near future.