Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management decided

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Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management decided to test the assets of the division for possible impairment. The test revealed the following: book value of division’s assets, $26.0 million; fair value of division’s assets, $21.4 million; sum of estimated future cash flows generated from the division’s assets, $28.9 million. What amount of impairment loss should C&R recognize? (Leave no cell blank, enter "0" if required. Enter your answer in millions. Input all amounts as positive value. Omit the "$" sign in your response.)

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Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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