Bovine Ltd. has the following assets in a CGU: Carrying Value (thousands) Equipment $ 861 Building 2,009 Land 1,170 Goodwill 200 $ 4,240 The recoverable amount has been determined to be $3,340. The separate fair value less costs of disposal for land is $1,070; no other assets could be separately valued. Required: 1. Allocate the impairment loss to individual assets and calculate the net book value of each asset after the impairment. (Enter answers in thousands of dollars.) Bovine Ltd. has the following assets in a CGU: Carrying Value (thousands) Equipment $ 861 Building 2,009 Land 1,170 Goodwill 200 $ 4,240 The recoverable amount has been determined to be $3,340. The separate fair value less costs of disposal for land is $1,070; no other assets could be separately valued. Required: 1. Allocate the impairment loss to individual assets and calculate the net book value of each asset after the impairment. (Enter answers in thousands of dollars.) Carrying Value (thousands) Proportion Allocation of impairment loss Net book value Equipment $861 % Building 2,009 % Land 1,170 % Goodwill 200 % $4,240 $0 $0 2. Assume that the recoverable amount recovered to $3,540 in the subsequent year. Allocate the impairment reversal to individual assets and calculate the net book value of each asset after the impairment. The separate fair value less costs of disposal for land remains at $1,070. There is no concern with a ceiling value when assigning the recovery to building or equipment. (Enter answers in thousands of dollars.) Carrying Value (thousands) Proportion Allocation of impairment loss Net book value Equipment % Building % Land % Goodwill % $0 $0 $0

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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Bovine Ltd. has the following assets in a CGU:

	Carrying Value (thousands)
Equipment		$	861
Building			2,009
Land			1,170
Goodwill			200
		$	4,240

The recoverable amount has been determined to be $3,340. The separate fair value less costs of disposal for land is $1,070; no other assets could be separately valued.

Required:
1. Allocate the impairment loss to individual assets and calculate the net book value of each asset after the impairment. (Enter answers in thousands of dollars.)

Bovine Ltd. has the following assets in a CGU:

	Carrying Value (thousands)
Equipment		$	861
Building			2,009
Land			1,170
Goodwill			200
		$	4,240

	Carrying Value (thousands)	Proportion	Allocation of impairment loss	Net book value
Equipment	$861		%
Building	2,009		%
Land	1,170		%
Goodwill	200		%
	$4,240			$0	$0

2. Assume that the recoverable amount recovered to $3,540 in the subsequent year. Allocate the impairment reversal to individual assets and calculate the net book value of each asset after the impairment. The separate fair value less costs of disposal for land remains at $1,070. There is no concern with a ceiling value when assigning the recovery to building or equipment. (Enter answers in thousands of dollars.)

	Carrying Value (thousands)	Proportion	Allocation of impairment loss	Net book value
Equipment			%
Building			%
Land			%
Goodwill			%
	$0			$0	$0

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