Question
On 30 June 2020, Sentosa Ltd's tour division showed the following assets. $ Buses Accumulated depreciation Office equipment Accumulated depreciation Land Inventory Cash Goodwill 800,000
On 30 June 2020, Sentosa Ltd's tour division showed the following assets. $
Buses
Accumulated depreciation Office equipment Accumulated depreciation Land
Inventory
Cash
Goodwill
800,000 (250,000) 100,000 (20,000) 1,200,000 60,000 80,000 30,000
However, due to the COVID-19 pandemic, the tour and travel industry was badly affected. As at 30 June 2020, Sentosa Ltd's tour division was determined to be worth only $1,300,000. The piece of land was appraised to have a fair value less costs to sell of $800,000. Sentosa Ltd allocates the impairment loss in accordance with AASB 136 Impairment.
Required:
Prepare the journal entries to account for the impairment loss as at 30 June 2020.
(9 marks)
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