Mesh Itd. has identified an impairment

loss of $20 000 on one of its Cash-

Generating Units (CUs). The CGU

consists of the following assets (stated at

current carrying amounts): Land $350

000 Building Mesh Itd. has identified an

impairment loss of $20 000 on one of its

Cash-Generating Units (CUs). The CGU

consists of the following assets (stated at

current carrying amounts):

Land $350 000

Building $500 000

Equipment $300 000

Fittings $150 000

The Recoverable

Amount of the building is $490,000.

1a

Calculate the allocation of the impairment

loss against all assets in the CGU.

1b

Record the journal entries to account for

the impairment loss.

2 An item of depreciable equipment is acquired on 1 July 2018 for $150 000. It is expected to

have a useful life of 5 years and a zero

residual value, On 1 July 2020, it is

decided to revalue the asset to its fair

value of $140 000. Provide journal entries

to account for the revaluation.