Exercise 11-30 (Algo) Impairment; property, plant, and equipment [LO11-8] General Optic Corporation operates a manufacturing plant...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Exercise 11-30 (Algo) Impairment; property, plant, and equipment [LO11-8] General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product 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 $ 48.5 million $ 15.8 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 $ 18.2 million The fair value of the Arizona plant is estimated to be $19 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) $19 million instead of $18.2 million and (4) $32.95 million instead of $18.2 million. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 Determine the amount of impairment loss. Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Impairment loss million < Req 1 Req 2 > 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). View transaction list Journal entry worksheet 1 If a loss is indicated, prepare the entry to record the loss. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $19 million instead of $18.2 million and (4) $32.95 million instead of $18.2 million. Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). 3. Impairment loss 4. Impairment loss million million Exercise 11-30 (Algo) Impairment; property, plant, and equipment [LO11-8] General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product 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 $ 48.5 million $ 15.8 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 $ 18.2 million The fair value of the Arizona plant is estimated to be $19 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) $19 million instead of $18.2 million and (4) $32.95 million instead of $18.2 million. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 Determine the amount of impairment loss. Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Impairment loss million < Req 1 Req 2 > 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). View transaction list Journal entry worksheet 1 If a loss is indicated, prepare the entry to record the loss. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $19 million instead of $18.2 million and (4) $32.95 million instead of $18.2 million. Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). 3. Impairment loss 4. Impairment loss million million
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
a) Analysts attempt to value ordinary shares, in order to determine if market values are correct. Identify and describe the more common methods of valuation. Include a detailed explanation of the...
-
Would a bank be liable to a customer who indorsed a check For deposit only into account #071698570 if that check were deposited into the wrong account? What if the customers indorsement was For...
-
Name and describe three problem-solving tools.
-
The cumulative foreign currency translation adjustment (CTA) account appears on the balance sheet as a component of accumulated other comprehensive income. The CTA account may have either a positive...
-
The Flying Leap of Flea High-speed motion pictures (3500frames/second) of a jumping 210-μg flea yielded the data to plot the flea's acceleration as a function of time as shown in Fig. 5.66. (See...
-
Bishop Co . began operations on January 1 , 2 0 1 7 . Financial statements for 2 0 1 7 and 2 0 1 8 con - tained the following errors: Dec. 3 1 , 2 0 1 7 Dec. 3 1 , 2 0 1 8 Ending inventory $ 1 9 8 ,...
-
In July 2020 the Kansas City Chiefs football team signed a 10-year contract with quarterback Patrick Mahomes that will pay him about $40 million a year. If the Chiefs were going to cover that salary...
-
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor...
-
Alice visited her local police station in response to Detective Barker's request that Alice meets with him at her convenience. The Detective wanted to discuss a series of burglaries that had occurred...
-
Riddle Ltd (Riddle) operates a gold mine in Western Australia. It has four members who are Harold (who holds 30% of the shares), Gary (who holds 30% of the shares), Marie (who holds 30% of the...
-
QUESTION TWO (20 MARKS) The data below gives the concentration of copper in tissues of a given plant: (a) (b) Leave 35 42 60 22 39 75 52 78 56 36 17 69 25 32 48 5 46 3 S Roots 40 51 71 29 49 89 62 77...
-
Sam and Sue are shopping for groceries. Sam looks at the list and tells Sue, "I'll get the cat food, soap, toilet paper, and flour, and I'll meet you by the lettuce." Sam takes off, muttering to...
-
Evaluate following prefix expressions /-AB*+DEF *^+A/BD-EFG /*-AB/DE**FGH Where, A=1, B=2, C=3, D=4, E=2, F=2, G=4, H=3
-
A number of years ago the United Food and Commercial Workers Union organized 800 workers of the 1035 employees at one of the Wilson Brothers food operations in Toronto, Ontario. The employees include...
-
Suppose that we wish to compute the inverse and log-determinant of the matrix \[ \mathbf{I}_{n}+\mathbf{U} \mathbf{U}^{\top} \] where \(\mathrm{U}\) is an \(n \times h\) matrix with \(h \ll n\). Show...
-
Suppose that in the stochastic gradient descent method we wish to repeatedly draw minibatches of size \(N\) from \(\tau_{n}\) where we assume that \(N \times m=n\) for some large integer...
-
Denote the pdf of the \(\mathscr{N}(\mathbf{0}, \boldsymbol{\Sigma})\) distribution by \(\varphi \Sigma(\cdot)\), and let \[ \mathscr{D}\left(\boldsymbol{\mu}_{0} \boldsymbol{\Sigma}_{0} \mid...
Study smarter with the SolutionInn App