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Question 4 ( 4 marks) Smart Robots Lid has started a company to undertake research and development of a new type of Robot. For this

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Question 4 ( 4 marks) Smart Robots Lid has started a company to undertake research and development of a new type of Robot. For this research and development (R & D), it incurred the following expenditure in June 2020: Payment Transaction Amount status a. Obtaining a general understanding of Robot dynamics $600,000 Paid b. Understanding what local customers expect from a Robot in the manufacturing sector $360,000 Incurred c. Testing and refining a certain type of Robot $1,080,000 Incurred d. Developing and testing a full prototype of the Robot, to be called the 'Rob King'. $2,280,000 Incurred e. Marketing of the Robot $1,440,000 Paid It is expected that there is a large market for Robots, which will generate millions of dollars in revenue. On 1 July 2020, Sydney Smart Robots acquired Al Robots Lid for cash of $12,500,000. At that date, Al Robot's net identifiable assets had a fair value of $10,150,000. The fair value of the net identifiable assets of Al Robots Lid is determined as follows: Customer list $87,500 Machinery $2,537,500 Buildings $2,625,00 Land $5,250,000 $10,500,000 Less: Bank loan $350,000 Net assets $10, 150,000 At the end of the reporting period of 30 June 2021, Smart Robots determines that the recoverable amount of the cash-generating unit, which is considered to be Al Robot Lid, totals $12,000,000. The carrying amount of the net identifiable assets of Al Robot Lid, which excludes goodwill, has not changed since acquisition and is $10, 150,000. REQUIRED: 4.1 Prepare journal entries for each transaction from a to e above, following the requirements under AASB 138. (2.5 Marks) 4.2 Calculate the amount for impairment of goodwill as at 30 June 2021 following the requirements under AASB 3 and AASB 136. Please show all your calculations. (1 Mark) 4.3 Prepare journal entries to record an impairment of goodwill as at 30 June 2021. (0.5 Mark)

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