0.71 8 points 01:20:06 manufactured at the Arizona site, an impairment test is deemed appropriate. Management...

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0.71 8 points 01:20:06 manufactured at the Arizona site, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant: Cost Accumulated depreciation $ 52.5 million $ 16.2 million General's estimate of the total cash flows to be generated by selling the products manufactured at its Arizona plant, not discounted to present value $ 19.0 million The fair value of the Arizona plant is estimated to be $21 million. Required: 1. Determine the amount of impairment loss. 2. If a loss is indicated, prepare the entry to record the loss. 3. & 4. Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $21 million instead of $19 million and (4) $36.55 million instead of $19 million. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 If a loss is indicated, prepare the entry to record the loss. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). No Event General Journal 1 1 Loss on impairment Research and development expense < Req 1 Req 3 and 4 > Debit Credit 15.3 15 0.71 8 points 01:20:06 manufactured at the Arizona site, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant: Cost Accumulated depreciation $ 52.5 million $ 16.2 million General's estimate of the total cash flows to be generated by selling the products manufactured at its Arizona plant, not discounted to present value $ 19.0 million The fair value of the Arizona plant is estimated to be $21 million. Required: 1. Determine the amount of impairment loss. 2. If a loss is indicated, prepare the entry to record the loss. 3. & 4. Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $21 million instead of $19 million and (4) $36.55 million instead of $19 million. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 If a loss is indicated, prepare the entry to record the loss. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). No Event General Journal 1 1 Loss on impairment Research and development expense < Req 1 Req 3 and 4 > Debit Credit 15.3 15

Answer rating: 100% (QA)

Okay lets calculate the impairment loss based on the given information Given Cost of the assets at the Arizona plant Not provided Accumulated deprecia... View the full answer