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Sa Homework: Chapter 12 Problems Question 2, P12-3 (book... HW Score: 0%, 0 of 12 points Part 1 of 6 O Points: 0 of 6 Cupcakes - R-Us, Inc in reviewing all available information regarding the future use of its baking oquement, which it intends to use for the follow Chok the icon to view additional information Asume that Cupcakes -R-Us determines that the likelihood of the expected futuro cash flows unde Eure Value 1 table Future Value of naty Annuity table Future Value of Art De More info Prenowe table Parkas can Ordinary Annuity table Presort Value of an Army Foad the requirements The company has cerved a decine in the demand for its products. The information indicates that this comment may be obsolete and could to improved Cupcakes R Usured the 2 years ago ata cost of $500.000 and depreciated using the method with an Requirement a. Compute the carrying value of Cupcakes -RU's equipment estimated residual value of $10,000 and a year Al the end of the second yow management estimates the following cash Rows from the The crying value of the baking codement at the end of two years in Cash-Flow Projection Cash-Flow Projection Estimate - Estimate 2 Future Period 120,000 120.000 Your 2 100.000 10000 70.000 35.000 30.000 o of the asso Yeart 5 Year Yoar 4 k newer Print Done Ordinary Requirements of Cupcak na lau tra ar llow at the end a. Compute the carrying value of Cupcakes -R-Us's equipment. b. Compute the expected cash flows given the likelihood of Estimate 1 and Estimate 2. What is the present value of the expected cash flows? Assume the cost of capital is 8%. C. Conduct the impairment tests for Cupcakes -R- Us using the results from part (b). If required, prepare the journal entry to record any impairment loss. Cas Print Done