SJ ltd has three cash generating units, Amber Division, Purple Division and Cerise Division. The head office is in the city, and the infrastructure for the divisions is located outside the city centre. Because of the potential for the company to have problems of an environmental nature or in relation to social justice, particularly with it mix of employees,

SJ Ltd has recently established a social responsibility centre (SRC), which interacts with the divisions, generating information and statistics for the production of a triple-bottom-line social responsibility report. At 31st December 2018, the net assets relating to each of the divisions as well as the headquarters section and the SRC were as follows:

Amber Division Purple Division Cerise Division Head office SRC

Land $120,000 $140,000 $80,000 $10,000 $5,000

Plant and Equipment 420000 310000 270000 40000 15000

Accumulated Depreciation (120000) (100000) (80000) (5000) (4000)

Inventories 150000 110000 100000 0 0

Accounts Receivable 90000 80000 50000 0 0

660000 540000 420000 45000 16000

Liabilities 60000 50000 50000 0 0

Net Assets $600,000 $490,000 $370,000 $45,000 $16,000

SJ Ltd believes that the corporation's headquarters supplies approximately equal service to the three divisions, and an immaterial amount to the SRC. Because the SRC has been established only recently, it is not possible at this stage to allocate the assets of the SRC to the three divisions. Economic indicators suggest that the company's assets may have been impaired, so management has determined the value in use of the three divisions- the Head office and the SRC do not generate cash inflows.

The value in use of the three divisions was calculated to be:

Amber Division $720,000

Purple Division $500,000

Cerise Division $400,000

Required:

Using IAS 36 to answer the following questions

i) Calculate the amount of the impairment loss, if any, for all divisions.

ii) Show the allocation of any impairment loss to all impaired divisions.

iii) Prepare the journal entries required at 31st December 2018 to account for any impairment losses.