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  • In A Nutshell: 1. Cash

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    Ryll Bedas
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    The document shows the assets and liabilities of a cash generating unit totaling $27.75 million. It was determined the unit's value in use was $22.5 million, resulting in an impairment loss of $5.25 million. This loss was applied to goodwill of $2.25 million and allocated to other non-cash assets, with $840,000 to inventory and $2.16 million to property, plant, and equipment.

    Original Description:

    Impairment 2

    Original Title

    ACC211_NUTSHELL

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    The document shows the assets and liabilities of a cash generating unit totaling $27.75 million. It was determined the unit's value in use was $22.5 million, resulting in an impairment loss of $5.25 million. This loss was applied to goodwill of $2.25 million and allocated to other non-cash assets, with $840,000 to inventory and $2.16 million to property, plant, and equipment.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    11 views2 pages

    In A Nutshell: 1. Cash

    Uploaded by

    Ryll Bedas
    The document shows the assets and liabilities of a cash generating unit totaling $27.75 million. It was determined the unit's value in use was $22.5 million, resulting in an impairment loss of $5.25 million. This loss was applied to goodwill of $2.25 million and allocated to other non-cash assets, with $840,000 to inventory and $2.16 million to property, plant, and equipment.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    IN A NUTSHELL

    1. Cash 3,000,000
    Accounts Receivable 4,500,000
    Less: ADA 750,000
    Inventory 5,250,000
    PPE 16,500,000
    Less: Accum Depreciation 3,000,000
    Goodwill 2,250,000
    Cash Generating Unit 27,750,000

    2. Cash Generating Unit 27,750,000


    Value in Use 22,500,000
    Impairment Loss 5,250,000

    Impairement Loss 5,250,000


    Applicable to Goodwill 2,250,000
    Applicable to other
    3,000,000
    non cash asset

    3. Carrying amount Loss


    Inventory 5,250,000 840,000
    PPE-net 13,500,000 2,160,000
    18,750,000 3,000,000

    Impairment Loss 5,250,000


    Inventory 840,000
    PPE-net 2,160,000
    Goodwill 2,250,000

    No impairment loss is allocated to accounts receivable because the accounts are considered collectible except t
    28% of the impairment loss is from the inventory and the remaining 72% is from the PPE, based on impairment
    IN A NUTSHELL

    onsidered collectible except those doubtful.


    e PPE, based on impairment on other noncash asset.

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