Question
Robin Ltd reported the following information in its statement of financial position at 30 June 2022. Cash $30,000 Inventories $85,000 Plant $325,000 Accumulated depreciation ---plant
Robin Ltd reported the following information in its statement of financial position at 30 June 2022.
| Cash | $30,000 | |
| Inventories | $85,000 | |
| Plant | $325,000 | |
| Accumulated depreciation ---plant | -$75,000 | |
| Intangible assets | $150,000 | |
| Accumulated amortisation | -$50,000 | |
| Land | $150,000 | |
| Liabilities | $74,000 | |
| Net assets | $540,000 | |
At 30 June 2022, Robin Ltd analysed the internal and external sources of information that would indicate deterioration in the worth of its assets. It determined that there were indications of impairment. Robin Ltd calculated the recoverable amount of the assets to be $490 000. The fair value of land less the cost of disposal is $120,000. (Robin Ltd can be treated as a cash-generating unit for impairment test purpose).
Required
Provide the journal entry for any impairment loss at 30 June 2022 with the detailed computation. 14 marks
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