Glenelg Bay Ltd has a Cash-Generating Unit (CGU) comprised of assets as follows:
On 30 June 2020, Glenelg Bay performed an impairment test for this CGU and determined that the recoverable amount is $120,000.
- Calculate the impairment loss as at 30 June 2020.
- Prepare a table as provided below to allocate the above impairment loss:
|ASSETS||Carrying amount||Proportion||Loss allocated||Adjusted carrying amount|
(c) Prepare a general journal (as per template below) to record the above impairment loss for the year ended 30 June 2020. Include a narration.