Exercise 12-14 (Part Level Submission) Presented below is net asset information related to the Windsor Division of Santana, Inc.

WINDSOR DIVISION NET ASSETS AS OF DECEMBER 31, 2017 (IN MILLIONS)

Cash $61

Accounts receivable 210

Property, plant, and equipment (net) 2,605

Goodwill 211

Less: Notes payable (2,600 )

Net assets $487

The purpose of the Windsor Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $405 million. Management has also received an offer to purchase the division for $335 million. All identifiable assets and liabilities book and fair value amounts are the same.