X Ltd anticipated that its assets may be impaired in June 2020. Land is measured by X Ltd at fair value. At 30 June 2020, the entity revalued the land to its fair value of $12 000. The land had previously been revalued upwards by $2 000. As a result of its impairment testing, X Ltd calculated that the recoverable amount of the entitys assets was $145 600. The carrying amounts of the assets of X Ltd prior to adjusting for the impairment test and the revaluation of the land were as follows.

Non-current assets

Buildings $340 000

Accumulated depreciation (77 600)

Land (at fair value 1/7/2019) 51 200

Plant and equipment 581 600

Accumulated depreciation (300 000)

Goodwill 24 000

Accumulated impairment losses (17 600)

Trademarks labels 32 000

Current assets

Cash 2 800

Receivables 3 600

Required:

1. Prepare the journal entries required on 30 June 2020 in relation to the measurement of the assets of X Ltd.
2. Assume that, as the result of the allocation of the impairment loss, the plant and equipment was written down to $256 000. If the fair value less costs of disposal of the plant and equipment was determined to be $240 000, outline the adjustments, if any, that would need to be made to the journal entries you prepared in part 1 of this question, and explain why adjustments are or are not required.

Reference: Loftus, J., Leo, K.J., Daniluc, S., Boys, N., Luke, B., Ang, H.N., & Byrnes, K. (2019), Financial Reporting, 3^rd End, John Wiley & Sons, Milton, Queensland, Australia