Munabhai Pearl Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRS. The carrying amounts of the division's assets at December 31, 2023, areas follows:LandBuildingEquipmentVehicles(a)$39,00068,00045,00033,000The lawn maintenance division has been assessed for impairment and it is determined that the division's value use is $166,500, fair value less costs to sell is $140,000, and undiscountedfuture net cash flows are $209,000.Date$185,000Your answer is partially correct.Determine if the cash-generating unit is impaired and prepare the journal entry, if any, to record the impairment at December 31, 2023, assuming that none of the individual assets inthe division has a determinable recoverable amount. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If noentry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Do not roundintermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.)December 31, 2023Account Titles and ExplanationLoss on ImpairmentBuildingsAccumulated Impairment Losses - BuildingAccumulated Impairment Losses - EquipmentLandDebitCreditTRUCO

A journal entry is a basic accounting record that is used to chronologically track financial…

Answered: Pearl Landscaping Limited has…

Pearl Landscaping Limited has determined that its lawn maintenal as follows: Land Building Equipment Vehicles $39,000 68,000 45,000 33,000 $185,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Po34. Coronado Landscaping Limited has determined that its lawn maintenance division is a cash-generating unit under IFRSThe carrying amounts of the division's assets at December 31, 2023, are as follows : Land $27,000 Building56,000 Equipment36,000 Vehicles19,000 $138,000 The lawn maintenance division has been assessed for impairment and it is determined that the division's value in use is $124,200, fair value less costs to sell is $93,000 , and undiscounted future net cash flows are $162,000.
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