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A company has the following assets in a CGU: Land: $125,000 Building: $450,000 Equipment:
$50,000 Assume that due to a change in the political landscape, the CGU was written down to
$550,000. However, at the next fiscal year end, the political landscape stabilizes and the
recoverable amount is now $605,000. Assume the building had a 25-year useful life, and the
equipment had a 10-year useful life. Required: Prepare the journal entry to record the impairment
reversal

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A company has the following assets in a CGU Land $125,000 Building.pdf

  • 1. A company has the following assets in a CGU: Land: $125,000 Building: $450,000 Equipment: $50,000 Assume that due to a change in the political landscape, the CGU was written down to $550,000. However, at the next fiscal year end, the political landscape stabilizes and the recoverable amount is now $605,000. Assume the building had a 25-year useful life, and the equipment had a 10-year useful life. Required: Prepare the journal entry to record the impairment reversal