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

question 72

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): $\begin{array}{|l|c|}\hline \text { Cash } & \$ 100 \\\hline \text { Accounts Receivable } & \$ 20 \\\hline \text { Inventories } & \$ 10 \\\hline \text { Property. Plant \& Equipment (net) } & \$ 200 \\\hline \text { Patents (net) } & \$ 20 \\\hline \text { Goodwill } & \$ 75 \\\hline & \\\hline \text { Total } & \$ 425 \\\hline\end{array}$
On December 31^st, 2014, the fair values of the assets listed above were as follows: $\begin{array} { | l | l | } \hline \text { Cash } & \$ 100 \\\hline \text { Accounts Receivable } & \$ 15 \\\hline \text { Inventories } & \$ 25 \\\hline \text { Property. Plant \& Equipment (net) } & \$ 120 \\\hline \text { Patents (net) } & \$ 60 \\\hline & \\\hline \text { Total } & \$ 320 \\\hline\end{array}$
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:

Carolina

Refers collectively or individually to the U.S. states of North Carolina and South Carolina, known for their historical significance in early American history.

New England Colonists

Early European settlers in the northeastern part of the United States, particularly noted for their role in establishing some of the first successful British colonies.

England

A country that is part of the United Kingdom, situated on the island of Great Britain.

King Philip's War

A conflict between American Indian inhabitants of New England and English colonists and their allies in 1675–78, one of the bloodiest wars per capita in U.S. history.