Avril, Inc., sells electronics and appliances. The excerpts that follow are adapted from Avril€™s financial statements for 2012 and 2011.

Requirements
1. How much was Avril€™s cost of plant assets at February 28, 2012? How much was the book value of plant assets? Show computations.
2. The financial statements give three evidences that Avril purchased plant assets and goodwill during fiscal year 2012. What are they?
3. Prepare T-accounts for Property, Plant, and Equipment; Accumulated Depreciation; and Goodwill. Then show all the activity in these accounts during 2012. Label each increase or decrease and give its dollar amount. During 2012, Avril sold plant assets that had cost the company $79 million (accumulated depreciation on these assets was $65 million). Assume goodwill was not impaired during 2012.
4. (Independent of the information in Requirement 3) Avril reviews its assets for impairment annually. On February 28, 2012, the fair value of the goodwill is estimated at $450 million. Prepare the journal entry to record theimpairment.

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February 28, 2012 2011 Balance Sheet (dollars in millions) Assets Total current assets Property, plant, and equipment.4,831 4,197 Less: Accumulated depreciation . Goodwill.. $7,987 $6,901 2,124 1,729 555 512 Year Ended February 28, 2012 2011 Statement of Cash Flows (dollars in millions) Operating activities: Noncash items affecting net income: Depreciation Investing activities 460 458 Additions to property, plant, and equipment.(713) (619)