Vegetarian Delights has been experiencing declining market conditions for its specialty foods division. Management decided to...
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Vegetarian Delights has been experiencing declining market conditions for its specialty foods division. Management decided to test the operational assets of the division for possible impairment. The test revealed the following: book value of the division's assets, $36.5 million; fair value of the division's assets, $30 million; sum of estimated future cash flows generated from the division's assets, $32 million. What amount of impairment loss should Vegetarian Delights record? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Impairment loss 4.5 million Vegetarian Delights has been experiencing declining market conditions for its specialty foods division. Management decided to test the operational assets of the division for possible impairment. The test revealed the following: book value of the division's assets, $36.5 million; fair value of the division's assets, $30 million; sum of estimated future cash flows generated from the division's assets, $32 million. What amount of impairment loss should Vegetarian Delights record? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Impairment loss 4.5 million
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Answer Impalrment loss Is 66 mllion Explanatlon The amoun... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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