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answer to part b please Blosm Enterprises, Inc. operates several stores throughout the western United States. As part of an operational and financial reporting review
answer to part b please
Blosm Enterprises, Inc. operates several stores throughout the western United States. As part of an operational and financial reporting review in a response to a downturn in its markets, the company's management has decided to perform an impairment test on 'five stores (combined). The five stores' sales have declined due to aging facilities and competition from a rival that opened new stores in the same markets. Management has developed the following information concerning the five stores as of the end of fiscal 2019. Determine the amount of impairment loss, if any, that Blossom should report for fiscal 2019 and the book value at which Blossom should report the five stores on its fiscal year-end 2019 balance sheet. Assume that the cash flows occur at the end of each year: (Round present value factor calculations to 5 decimal places, es. 1.25124 and the final answer to 0 decimal places eg. 5,125. If no lo5s, enter amount as 0.) Amount of impairment loss Determine the amount of impairment loss, assume that (1) the estimated remaining useful life is 10 years, (2) the estimated annual cash fows are $2,535,670 per year, and (3) the appropriate discount rate is 6 percent. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places es. 5,125. If no loss, enter amount as 0 .) Amount of impairment loss Step by Step Solution
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