Question $24($Mandatory$)(4$ points$)$

Saved

A company owns a manufacturing plant in a foreign country. Political unrest in the country indicates that the company should investigate.for possible impairment.

Below is information related to the plant's assets $($ $ in millions$)$:

Book value

Undiscounted sum of future estimated cash

flows

Present value of future cash flows $192$

Fair value less cost to sell $($determined by appraisal$)$

$ $205$

$227$

$198$

The amount of the impairment loss that the company should recognize according $t$ U$.$S$.$ GAAP is:

$$25$ million.

$$7$ million.

$$0.$

$$13$ million.