Snow Ltd is an entity that specialises in the manufacture of leather footwear for women. It has aggressively undertaken a strategy of buying out other companies that had competing products. These companies were liquidated and the assets and liabilities were brought into Snow Ltd.

At 30 June 2022, Snow Ltd reported the following assets in its statement of financial position.

Cash	$ 20,000
Leather and other inventories	390,000
Shoe factory at cost	300,000
Accumulated depreciation - factory	(100,000)
Machinery for manufacturing shoes	500,000
Accumulated depreciation - machinery	(200,000)
Goodwill on acquisition of competing companies	90,000
	$1,000,000

In response to competition from overseas, as customers increasingly buy online rather than visit Snow Ltds stores, Snow Ltd assessed its impairment position at 30 June 2022. The indicators suggested that an impairment loss was probable. Snow Ltd calculated a recoverable amount of its company of $880,000.

Required:

1. Prepare impairment allocation analyses. [2 Marks]
2. Prepare the journal entries to account for the impairment. Narrations are not required. [2 Marks]