Exercise 15.22 ** IMPAIRMENT, TWO CASH-GENERATING UNITS Miles Ltd has two divisions, Jericho and Jackson. Each of these is regarded as a separate cash-generating unit. At 31 December 2016, the carrying amounts of the assets of the two divisions were: Plant Accumulated depreciation Patent Inventory Receivables Goodwill Jericho $ 1500 (650) 240 54 75 25 Jackson $1 200 (375) 75 82 20 The receivables were regarded as collectable, and the inventory's fair value less costs of disposal was equal to its carrying amount. The patent had a fair value less costs of disposal of $220. The plant at Jericho was depreciated at $300 p.a., and that at Jackson was depreciated at $250 p.a. Miles Ltd undertook impairment testing at 31 December 2016, and determined the recoverable amounts of the two divisions to be: Jericho Jackson $ 1 044 990 As a result, management increased the depreciation of the Jericho plant from $300 to $350 p.a. for the year 2016. By 31 December 2017, the performance in both divisions had improved, and the carrying amounts of the assets of both divisions and their recoverable amounts were as follows: Carrying amount Recoverable amount Jericho $1322 1 502 Jackson $1433 1520 Required Determine how Miles Ltd should account for the results of the impairment tests at both 31 December 2016 and 31 December 2017