Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company's cash-generating unit are shown as follows (in millions) on the company's SFP: Goodwill Equipment Building Patent rights Cost $ 1,240 4,400 6,640 2,040 $14,320 Accumulated Depreciation 0 2,900 2,170 290 $5,360 Net Book Value $1,240 1,500 4,470 1,750 $8,960 An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $5,600 million. The assets are not separable-they must be operated or sold together as a group. Required: 1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate pere answers to the nearest whole number (i.e. 0.12 should be considered as 12%) and final answers to the nearest whole dollar amount. Enter the amounts in millions.) View transaction list Journal entry worksheet

Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company's cash-generating unit are shown as follows (in millions) on the company's SFP: Goodwill Equipment Building Patent rights Cost $ 1,240 4,400 6,640 2,040 $14,320 Accumulated Depreciation 0 2,900 2,170 290 $5,360 Net Book Value $1,240 1,500 4,470 1,750 $8,960 An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $5,600 million. The assets are not separable-they must be operated or sold together as a group. Required: 1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate pere answers to the nearest whole number (i.e. 0.12 should be considered as 12%) and final answers to the nearest whole dollar amount. Enter the amounts in millions.) View transaction list Journal entry worksheet

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.6: Buying Intangible Assets And Calculating Amortization Expense

Problem 1OYO

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