Question: Use the same information from E12- 1 except now assume the following cash flow projections: In E12-1 Future Period Cash Flow Projection Year 1 .$

Use the same information from E12- 1 except now assume the following cash flow projections:
In E12-1

Future Period Cash Flow Projection
Year 1 €¦€¦€¦€¦€¦€¦€¦.$ 1,450,000
Year 2 €¦€¦€¦€¦€¦€¦€¦. 850,000
Year 3 €¦€¦€¦€¦€¦€¦€¦. 400,000
Year 4 €¦€¦€¦€¦€¦€¦€¦. 400,000
Year 5 €¦€¦€¦€¦€¦€¦€¦. 250,000
Total $ 3,350,000
Required
a. Compute the impairment loss for the current year, if any.
b. Prepare the journal entry to record the impairment loss, if needed.

Description Factory building (used in several segments) Less: Accumulated depreciation Net book value Camying Vl Estimated Fair Value $10,000,000 4,500,000) $5,500,000 S 8900,000 Land 2000,000 S14,000,000 Lens manufacturing equipment Less: Accumulated depreciation Net book value S 2.100,000 (600,000 1,500,000 1,100,000 Lens polishing equipment Less: Accumulated depreciation Net book value $ 3,000,000 (1,200,000) $1,800,000 s 1,625,000 General factory equipment (used in several segments) Less: Accumulated depreciation Net book value $ 6,500,000 4,000,000) 2,500,000 S 2,400,000 Delivery trucks (used in several segments) Less: Accumulated depreciation Net book value $ 1,750,000 300,000) 1.450,000 $ 1.125,000 Total net fixed assets $19.750.000

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