PART C

Exercise 11-21 (Part Level Submission) Bonita Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRS. The carrying amounts of the division's assets at December 31, 2020, are as follows: Land Building Equipment Vehicles $42,000 72,000 47,000 33,000 $194,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $174,600, fair value less costs to sell is $149,000, and undiscounted future net cash flows are $218,000. (a) Your answer has been saved and sent for grading. See Gradebook for score details. Determine if the cash-generating unit is impaired and prepare the journal entry, if any, to record the impairment at December 31, 2020, assuming that none of the individual assets in the division has a determinable recoverable amount. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2020 Loss on Impairment $19,400 Accumulated Impairme $4,200 Accumulated Impairme $7,200 Accumulated Impairme $4,700 Accumulated Impairme $3,300 Attempts: 1 of 1 used (b) Your answer has been saved and sent for grading. See Gradebook for score details. Prepare the journal entry, if any, to record the impairment at December 31, 2020, assuming that the division's only individual asset that has a determinable recoverable amount is the building, which has a fair value less costs to sell of $68,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2020 Loss on Impairment $19,400 Accumulated Impairme $4,000 Accumulated Impairme $5,302 Accumulated Impairme $5,933 Accumulated Impairme $4,165 Attempts: 1 of 1 used (c) Assume that Bonita prepares financial statements under ASPE instead, and that the lawn maintenance division is an asset group. Determine if the asset group is impaired and prepare the journal entry, if any, to record the impairment at December 31, 2020, assuming that none of the individual assets in the division has a determinable recoverable amount. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020