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Please help me solve this Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the
Please help me solve this
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 $ 1,199 1,190 6, 11e 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 Impalrment 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. Required: 1. Prepare an adjusting Journal entry to record the Impalrment. (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 View journal entry worksheet NO Transaction Debit Credit 1 1 5,350 730 General Journal Impairment loss Goodwill Accumulated depreciation-Equipment Accumulated amortization-Patent rights Accumulated depreciation-Building 2.500 250 1.870Step by Step Solution
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