Journal Entries for Impairment Loss
Crossbow Ltd is an entity that specialises in the manufacture of leather footwear for women. It has aggressively undertaken a strategy of buying out other companies that had competing products. These companies were liquidated and the assets and liabilities brought into Crossbow Ltd. At 30 June 2015, Crossbow Ltd reported the following assets in its statement of financial position: Land $200 000 Inventory products 180 000 Brand ‘Crossbow Shoes’ 160 000 Shoe factory 700 000 Machinery for manufacturing shoes 400 000 Goodwill on acquisition of competing companies 40 000 $1 680 000 Because of the competition from overseas as customers pursue a strategy of buying online rather than visit Crossbow Ltd’s stores,…
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