Question:

Vision Ltd acquired all the assets and liabilities of Hazel Ltd on 1 January 2018. Vision Ltd's activities were run through three separate businesses, namely Sandstone Unit, the Sapphire Unit and the Silverton Unit. These units are separate cash-generating units.

Vision Ltd allowed unit managers to effectively operate each of the units, but certain central activities were run through the cooperate office. Each unit were allocated a share of the goodwill acquired, as well as a share of the corporate office. At 31 December 2018, the assets allocated to each unit were as follows: Sandstone $

Sapphire $

Silverton $

Factory

820

750

460

Accumulated depreciation

(420)

(380)

(340)

Land

200*

300**

150*

Equipment

300

410

560

Accumulated depreciation

(60)

(320)

(310)

Inventory

120*

80*

100*

Goodwill

40

50

30

Corporate property

200

150

120