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Please use the information provided to complete the tables. I know goodwill should be written down to 0 first and the rest is allocated, but
Please use the information provided to complete the tables. I know goodwill should be written down to 0 first and the rest is allocated, but I am not sure what to do from there (in particular with the land).
Equipment Building Land Goodwill Carrying Value (thousands) S 600 650 700 550 $ 2,500 The recoverable amount has been determined to be $1,500. The separate fair value less costs to sell for land is $600; no other assets could be separately valued. Required: 1. Allocate the impairment loss to individual assets and calculate the net book value of each asset after the impairment. (Enter answers in thousands of dollars.) Carrying Value (thousands) Proportion Allocation of impairment lo5S Net book value $ 600 Equipment Building Land 650 Goodwill 700 550 2,500 2. Assume that the recoverable amount recovered to $1,800 in the subsequent year. Allocate the impairment reversal to individual assets and calculate the net book value of each asset after the impairment. The separate fair value less costs to sell for land remains at $600. There is no concem with a ceiling value when assigning the recovery to building or equipment. (Enter answers in thousands of dollars.) Carrying Value (thousands) Proportion Allocation of impairment loss Net book value Equipment Building Land GoodwillStep by Step Solution
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