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8 Exercise 11-30 (Static) Impairment; property, plant, and equipment (LO11-8) General Optic Corporation operates a manufacturing plant in Arizona, Due to a significant decline in

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8 Exercise 11-30 (Static) Impairment; property, plant, and equipment (LO11-8) General Optic Corporation operates a manufacturing plant in Arizona, Due to a significant decline in demand for the product manufactured at the Arizona site, an impalement test is deemed appropriate Management has acquired the following information the assets at the plant 0.33/0.75 paints awarded Scored Cost Accumulated depreciation General's estimate of the total cash flows to be generated by selling the products manufactured at its Arizona plant, not discounted to present value $32,500,000 14,200,000 15,000,000 The fair value of the Arizona plant is estimated to be $11,000,000. Required: 1. Determine the amount of impairment loss. 2. If a loss is indicated, prepare the entry to record the loss. 3. & 4. Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $12,000,000 instead of $15,000,000 and (4) $19,000,000 instead of $15,000,000 Complete this question by entering your answers in the tabs below. Rea 1 Reg 2 Req 3 and 4 Determine the amount of impairment loss. (Negative amount should be indicated by a minus sign) Impairment loss IS 7.300.000 Reg 2 > Reg 1 Reg 2 Reg 3 and 4 If a loss is indicated, prepare the entry to record the loss. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Debit Credit Event 1 1 General Journal Loss on impairment Accumulated depreciation Plant assets 7.300 14,200 21,500 Req1 Req 3 and 4 > Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 and 4 Determine the amount of Impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $12,000,000 instead of $15,000,000 and (4) $19,000,000 instead of $15,000,000 (Negative amounts should be indicated by a minus sign.) 3 $ Impairment loss Impairment loss 183,000 3 190,000 4 $

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