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The following is net asset information for the Dhillon Division of Klaus Inc.: NET ASSETS as at December 31, 2020 (in millions) Book Value Fair

The following is net asset information for the Dhillon Division of Klaus Inc.:
NET ASSETS as at December 31, 2020 (in millions)
Book Value Fair Value Excluding Goodwill

Cash

$ 61 $ 61

Accounts receivable

225 225

Property, plant, and equipment (net)

2,636 2,816

Goodwill

208

Less: Notes payable

(2,613 ) (2,613 )

Net assets

$ 517
The purpose of the Dhillon Division (also identified as a reporting unit or cash-generating unit) is to develop a nuclear-powered aircraft. If successful, travelling delays that are associated with refuelling could be greatly reduced, and operational efficiency would increase significantly. To date, management has not had much success and is deciding whether a writedown is appropriate at this time. Management has prepared the following estimates for the reporting unit or cash-generating unit:
1. Undiscounted future net cash flows are approximately $412 million.
2. Future value in use is approximately $514 million.
3. Sale of the unit would yield $344 million and selling costs would total $5 million.
Under ASPE, determine if there is any impairment and prepare any necessary entry on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Enter amounts in millions.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2020

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

On December 31, 2021, it is estimated that the reporting units fair value has increased to $412 million. Under ASPE, prepare the journal entry, if any, to record the increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Enter amounts in millions.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2021

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

Under IFRS, determine if there is any impairment and prepare any necessary entry on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Enter amounts in millions.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2020

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

SHOW LIST OF ACCOUNTS

LINK TO TEXT

LINK TO TEXT

On December 31, 2021, it is estimated that the cash-generating units fair value has increased to $412 million. Under IFRS, prepare the journal entry, if any, to record the increase in fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Enter amounts in millions.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2021

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31

enter a debit amount

enter a credit amount

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