CBS Corporation and Warner Bros., a subsidiary of Time Warner, Inc., each contributed assets for a 50

Question:

CBS and Warner Bros., a subsidiary of Time Warner, Inc., each contributed assets for a 50 percent interest in a new national broadcasting network, The CW, in 2006. In September 2006, Warner Bros, shut down The WB Network and Time Warner recorded a $200 million impairment charge related to allocated to The WB Network. Although Time Warner's evaluation of occurred in 2006, use current for impairment to answer the questions below. Use the information above, as well as the information on Time Warner provided in Chapter 4.
Required
a. Why is assigned to business units? Was assigned to The WB Network as a business unit? Explain.
b. In general, how are impairment losses calculated? Why do you think Time Warner recorded the 2006 impairment loss of $200 million?
c. How does Time Warner account for its 50 percent investment in The CW in its consolidated financial statements?
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