Problem Two: Depreciation, Goodwill, and Impairment Loss (4 points) At the beginning of 2020, Creeper Corporation acquired Steve, Inc. for $600 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $190 million Patent $80 million Goodwill $100 million The plant and equipment are depreciated over a 13-year usell life on a straight-line basis; there is no estimated residual value. The patent is estimated to have a 6-year usell life, no residual value, and is amortized using the straight-line method. At the end of 2022, a change in business climate indicated to management that the assets of Steve might be impaired. The following amounts have been determined: Plant and equipment: Undiscounted sum of future cash ows $80 million Fair value $60 million Patent: Undiseounted sum of lture cash ows $60 million Fair value $53 million Goodwill: Fair value of Steve, Inc. $450 million Book value of Steve's net assets (including goodwill) $510 million *Assume that this amount has already been adjusted for any impairment losses that are needed for the plant and equipment and the patent. Required: 1. Compute the book value at the end of 2022 for (a) the plant and equipment and (b) the patent. 2. When should the plant and equipment and the patent be tested for impairment? 3. When should goodwill be tested for impairment? 4. Determine the amount of impairment loss to be recorded, if any, for (a) the plant and equipment, (b) the patent, and (c) the goodwill