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Q2 PPE, Intangible Asset and Impairment 11 Points Q2.1 5 Points On 30 June 2021, the carrying amounts of the assets of a CGU are

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Q2 PPE, Intangible Asset and Impairment 11 Points Q2.1 5 Points On 30 June 2021, the carrying amounts of the assets of a CGU are as follows: Assets Cash Accounts Receivable Allowance for doubtful debts Inventories Machinery Accumulated depreciation - machinery Building Accumulated depreciation - building Goodwill $10,000 $30,000 ($5,000) $50,000 $200,000 ($80,000) $400,000 ($120,000) $25,000 Additional information on 30 June 2021: The recoverable amount of the unit is assessed to be $460,000. The receivables are considered to be collectable, except those considered doubtful. The fair value of building is $265,000. Required: Prepare all necessary journal entries to record the impairment loss of the CGU for the year ended 30 June 2021.Ignore any tax effect. Q2.2 4 Points In the 30 June 2021 annual report of Tony Ltd, the plant was reported as follows: $ 200 000 Plant (at cost) Accumulated depreciation 40 000 160 000 The plant is depreciated on a straight-line basis over a 10-year period with the residual value o zero. Tony Ltd adopts the revaluation model for the plant. The company finds out that the plant has a fair value of $140,000 on 30 June 2021. On 30 June 2022, the fair value of the plant is assessed to be $145,000. Required: Prepare all necessary journal entries associated with the revaluation of the plant for the year ended 30 June 2022.Ignore any tax effect. Q2.3 2 Points Net Ltd acquired Web Ltd on 25 June 2021. At the date of acquisition, Web Ltd had a research and development project with a cost of $35,000. After the acquisition, Net Ltd decides to continue the research and development project and incurs a cost of $20,000 for the project in year ended 30 June 2022 Required: Discuss how Net Ltd should treat the costs of the research and development project at the acquisition date and after the acquisition date in accordance with AASB 138 Intangible Assets

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