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Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company's cash-generating unit are
Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company's cash-generating unit are shown as follows (in millions) on the company's SFP: Accumulated Net Book Goodwill Equipment Building Cost $ 1,020 3,400 Depreciation Value $0 $1,0201 2,140 1,260 5,110 1,600 3,510 Patent rights 490 $10,020 220 $3,960 270 $6,060 An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $4,550 million. The assets are not separable-they must be operated or sold together as a group. Required: 1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e. 0.12 should be considered as 12%) and final answers to the nearest whole dollar amount. Enter the amounts in millions.) View transaction list Journal entry worksheet < Record the adjusting entry for impairment of all the assets in the group. Note: Enter debits before credits Transaction General Journal) Debit Credit View general journal Record entry Clear entry
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