Prepare the journal entries required at 30 June 2019 to account for any impairment losses.

A large manufacturing company, St. George Ltd, has its operations in Newcastle. It has two cash-generating units, Red Unit and Dragon Unit. At 30 June 2019, the management of the company decided to conduct impairment testing. It calculated that the recoverable amounts of the two divisions were $1,243,700 (Red Unit) and $930,200 (Dragon Unit). In considering the assets of the cash- generating units the company allocated the assets of the corporate area equally to the units. 89,700 The carrying amounts of the assets and liabilities of the two cash-generating units and the corporate assets at 30 June 2019 were as follows: Red Unit Dragon Unit Corporate Equipment $ 959,600 Accumulated depreciation (Equipment) (360,300) Land 269,800 $ 450,300 Buildings 329,900 419,500 $ 629,800 Accumulated depreciation (Buildings) (120,300) (180,400) (150,300) Furniture and fittings Accumulated depreciation (Furniture and (29,800) fittings) Goodwill 42,500 Cash 35,900 23,700 Inventories 89,500 120,000 Receivables 59,500 24,100 Total assets 1,263,600 917,100 522,000 Provisions 60,000 120,000 Debentures 90,300 198,000 Total liabilities 150,300 318,000 Net assets $1,113,300 $ 599,100 In relation to these assets: the receivables of both units were considered to be collectable the land held by the Dragon Unit had a fair value less costs of disposal of $404,800