Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 3: Loftus et al (2023) Chapter 8, Ex.8.19 amended Charleston Ltd is in the business of manufacturing children's toys. Its operations are carried out
Question 3: Loftus et al (2023) Chapter 8, Ex.8.19 amended Charleston Ltd is in the business of manufacturing children's toys. Its operations are carried out through three operating divisions, namely the Merlin Division, the Hollow Division and the Hills Division. These divisions are separate CGUs. In accounting for any impairment losses, all central management assets are allocated to each of these divisions. At 30 June 2022 , the assets allocated to each division were as follows. In relation to land values, the land relating to the Merlin and Hills Divisions have carrying amounts less than their fair values as stand-alone assets. The land held by the Hollow Division has a fair value less costs of disposal of $234,000. Charleston Ltd determined the recoverable amount of each of the CGUs at 31 July 2022 as follows: Merlin $936,000; Hollow $720,000; Hills $640,000. Required: Prepare the journal entries for Charleston Ltd to record any impairment loss at 30 June 2022. Show all calculations
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started