Question
Venus Co. has collected the following data for impairment test of a Cash Generating Unit (CGU) on September 31, 2021, which is the end of
Venus Co. has collected the following data for impairment test of a Cash Generating Unit (CGU) on September 31, 2021, which is the end of its fiscal year.
| Book value | Fair Value | Costs to sell | Value-in-use | |
| Goodwill | $30,000 | |||
| Machinery | $250,000 | $200,000 | $5,000 | $220,000 |
| Building | $400,000 | $450,000 | $10,000 | $380,000 |
| Total for the CGU | $680,000 | $650,000 | $15,000 | $600,000 |
Required
1) Has the CGU have nay impairment loss in 2021? If yes then calculate and record the impairment loss on the CGU on September 31, 2021
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
