The Assets of the DEF Inc On December 31^st,2014,the Fair Values of the Assets Listed Above

question 149

Essay

The assets of the DEF Inc.(a separately incorporated entity fully owned of subsidiary GHI Transport Inc.) showed the following asset carrying values on December 31^st,2014 (in millions): $$\begin{array} { l l } \text { Cash } & \$ 100 \\\text { Accounts Receivable } & \$ 20 \\\text { Inventories } & \$ 10 \\\text { Property, Plant \& Equipment (net) } & \$ 200 \\\text { Patents (net) } & \$ 20 \\\text { Goodwill } & \$ 75 \\& \\\text { Total } & \mathbf { \$ 4 2 5 }\end{array}$$ On December 31^st,2014,the fair values of the assets listed above were as follows: $$\begin{array} { l l } \text { Cash } & \$ 100 \\\text { Accounts Receivable } & \$ 15 \\\text { Inventories } & \$ 25 \\\text { Property, Plant \& Equipment (net) } & \$ 120 \\\text { Patents (net) } & \$ 60 \\\text { Total } & \$ 320\end{array}$$ Both DEF and GHI Inc.adhere to IFRS.
Required: Provide the journal entry to record the impairment loss (if any) above.

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Definitions:

Correlational Measures

Statistical methods used to determine the relationship or association between two variables without inferring cause and effect.

Economic Status

The position or rank of an individual or group within the societal hierarchy, often measured by income, wealth, education, and employment.

Political Preferences

Individual or collective choices or inclinations regarding political parties, policies, or candidates.

Standard Deviation

A statistical measure of the dispersion or variability within a data set, indicating how spread out the numbers are from the mean.