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Impairment Testing - Multiple Cash Generating Units: A company has three reporting units ( divisions ) : A , B , and C . Unit
Impairment Testing Multiple Cash Generating Units: A company has three reporting units divisions: A B and C Unit C has experienced declining sales and profitability for several years. The carrying amounts are: A $ million, B $ million, C $ million. A valuation expert determines the fair value less cost to sell to be: A $ million, B $ million, C $ Corporate assets not allocated to any unit have a carrying value of $
Explain the steps involved in the impairment testing process.
Calculate the necessary impairment lossesif any and allocate them to the reporting units and goodwill.
Prepare the journal entry to record any impairment loss.
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