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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 impairment test is deemed appropriate Management has acquired the following information for the assets at the plant 0.75 points 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 B00W Pynt 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 References Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 and 4 Determine the amount of impairment loss. (Negative amount should be indicated by a minus sign.) Impairment loss 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.) View transaction list Journal entry worksheet 1 If a loss is indicated, prepare the entry to record the loss. Note: Enter debits before credits tes Event General Journal Debit Credit 1 Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. ht Req 1 Reg 2 Req 3 and 4 ences 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 4

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