At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $670 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipnent (depreciable assets) $157 million Patent 47 million Goodwill 110 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is amortized using the straight-line method. At the end of 2021, a change in business climate indicated to management that the assets of Elison might be impaired. The following amounts have been determined: Plant and equipment Undiscounted sun of future cash flows $ 87 million Fair value 67 million Patent Undiscounted sum of future cash flows $ 21 million Fair value 14 million Goodwill: Fair value of Ellison Technology Corporation $527 million Fair value of Ellison's net assets (excluding goodwill 468 million Book value of Ellison's net assets (including goodwill 548 million "After first recording any impairment losses on plant and equipment and the patent. Required: 1. Compute the book value of the plant and equipment and patent at the end of 2021 4. Determine the amount of any impairment loss to be recorded, if any, for the three assets. Complete this question by entering your answers in the tabs below. Required 1 Required 4 Compute the book value of the plant and equipment and patent at the end of 2021. (Enter your answers in millions.) Book Value million Plant and equipment Patent milion Required 4 > At the beginning of 2019, Metatec Inc, acquired Elison Technology Corporation for $670 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $157 million Patent 47 million Goodwill 110 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is amortized using the straight-line method. At the end of 2021, a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined: $ 87 million 67 million Plant and equipment: Undiscounted sun of future cash flows Fair value Patent : Undiscounted sum of future cash flows Fair value Goodwill: Fair value of Ellison Technology Corporation Fair value of Ellison's net assets (excluding goodwill) Book value of Ellison's net assets (including goodwill) $ 21 million 14 million $527 million 460 million 540 millions After first recording any impairment losses on plant and equipment and the patent. Required: 1. Compute the book value of the plant and equipment and patent at the end of 2021. 4. Determine the amount of any impairment loss to be recorded, if any, for the three assets. Complete this question by entering your answers in the tabs below. Required: Required 4 Determine the amount of any impairment loss to be recorded, if any, for the three assets. (Enter your answers in millions Negative amounts should be indicated by a minus sign.) Plant and equipment Patent Goodwill Impairment Loss million milion million
