Question
Information has been collected regarding Orange Companys cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Companys cash-generating unit are
Information has been collected regarding Orange Companys cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Companys cash-generating unit are shown as follows (in millions) on the companys SFP: Cost Accumulated Depreciation Net Book Value Goodwill $ 1,190 $ 0 $ 1,190 Equipment 1,190 2,500 1,550 Building 6,110 1,870 4,240 Patent rights 1,640 250 1,390 $ 12,990 $ 4,620 $ 8,370
An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $5,350 million. The assets are not separablethey must be operated or sold together as a group.
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 Depreciation Goodwill Equipment Building Patent rights Cost $ 1,190 1,199 6, 110 1,640 $12,990 2,5ee 1,870 250 $4,620 Net Book Value $1,190 1,550 4,240 1,390 $8,370 An Impairment test Indicates that the recoverable amount assigned to the assets of this CGU IS $5,350 million. The assets are not separablethey must be operated or sold together as a groupStep by Step Solution
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