4.Impairment of Finite Lived Assets.

Illumination Inc. owns a factory makes light bulbs. During 2018, due to increased

competition from LED manufacturers, the company determined that an

impairment test was appropriate. Management has prepared the following

information for the assets of the factory (In $millions).

Cost of Factory Assets

$680

Accumulated Depreciation

450

Net Book Value

$230

Estimated future undiscounted cash

flow from the factory

$200

Fair value of factory assets

$180

a. Perform the impairment test for these factory assets, clearly labeling

your work between Step #1 and Step #2

b. Prepare the journal entry to record the impairment, if one exists.