Question 4 Mumpets Ltd has determined that its construction division is a cash-generating unit. carrying amounts of the net assets for this division as at 30 June 2018 are as follows The Cash Accounts Receivable (net) Inventory Loan Receivable Machinery Accumulated Depn Machinery Buildings Accumulated Depn - Buildings Land Goodwill Total Accounts Payable Net Assets $ 22 000 46 000 112 000 100 000 270 000 (90 000) 360 000 (90 000) 300 000 80 000 1 110 000 78 000 The land has a fair value less costs of disposal of $250,000 (as at 30 June 2018) It was determined on 30 June 2018 that the CGU's fair value less costs of disposal was $896,000, and its value in use was $912,000 At 30 June 2019, Mumpets Ltd, because of a reversal of the indicators leading to the impairment, assessed the recoverable amount of the cash-generating unit to be $70,000 more than the carrying amount of the unit. As a result, Mumpets Ltd recognised a reversal of the impairment loss As at 30 June 2018, prior to impairment, depreciation was charged on the Machinery at $45,000 p.a. and on the Buildings at $15,000 p.a. After impairment, the new depreciation was revised to $30,000 p.a. for the Machinery and $25,000 p.a. for the Buildings. The land has a fair value less costs of disposal of $280,000 (as at 30 June 2019) Required a) Provide the appropriate journal entry for Mumpets Ltd in relation to the impairment testing on 30 June 2018. Show all calculations and workings. 10 marks