Bronson Corporation operates several factories that manufacture equipment for the restaurant industry. Due to expanding operations, the company purchased an additional factory in early January 20Y5. . The cash purchase price of $7.5M included 6 acres of land and an existing building. According to independent appraisals at the time of purchase, the fair value of the building was $6.4M and the fair value of the land was $1.6M. Bronson will depreciate the building over 30 years using the straight-line method. Estimated salvage value is $420,000. Cash paid for general building maintenance during the first three years is as follows: $60,000 during 2045, $64,000 during 2076, and $72,000 during 2017 In early January 20Y6, Bronson spent $1,247,000 on factory renovations to make future operations more efficient. In early January 2017, Bronson's auditors suggested that the book value of the factory building might be impaired due to an unexpected decline in the demand for products manufactured at the factory. Management estimated that net future cash flows over the factory's remaining useful life would be approximately $6.2M. An updated independent appraisal showed that the factory's fair value had declined to $5,672,000. Bronson decided to continue to use the factory rather than sell it and as a result, revised the factory's estimated salvage value to $240,000. Determine the impact the above transactions had on Bronson's financial statements from 20Y5 to 20Y7. Round all amounts to the nearest whole dollar. The Balance Sheet should reflect cumulative changes to the accounts. So, after the first year, these amounts will equal the change in that account since the first year, given the information you are provided (so add them together each year). List account names or transaction descriptions in the first column and amounts in the remaining columns (the first is provided for you in the Statement of Cash Flows). While you are provided with all the rows that you will need for the entire assignment (on page 2), not all columns will be used in each year. NOTE: Do the t-accounts for all three years first and then transfer your answers to the appropriate financial statements Factory Building, Net Cash Land Maintenance Expense Depreciation Expense Loss on Impairment STATEMENT OF CASH FLOWS 2045 2046 2047 For Property, Plant, or Equipment Net Cash Flows ($7,560,000) ($1,311,000 ($72,000) INCOME STATEMENT 20Y5 2046 2047 Net Income BALANCE SHEET (CUMULATIVE CHANGES - OR CHANGE IN ACCOUNT SINCE THE FIRST YEAR - SO ADDED TOGETHER) 2045 20Y6 2047 ASSETS: Change in Assets ($246.000) ($539,000) ($1,965,000) LIABILITIES + EQUITY: Change in Liabilities + Equity ($246,000) ($539.000) ($1,965,000) Please Show Calculations Below (or add additional pages if needed - and inserting pictures is acceptable): Bronson Corporation operates several factories that manufacture equipment for the restaurant industry. Due to expanding operations, the company purchased an additional factory in early January 20Y5. . The cash purchase price of $7.5M included 6 acres of land and an existing building. According to independent appraisals at the time of purchase, the fair value of the building was $6.4M and the fair value of the land was $1.6M. Bronson will depreciate the building over 30 years using the straight-line method. Estimated salvage value is $420,000. Cash paid for general building maintenance during the first three years is as follows: $60,000 during 2045, $64,000 during 2076, and $72,000 during 2017 In early January 20Y6, Bronson spent $1,247,000 on factory renovations to make future operations more efficient. In early January 2017, Bronson's auditors suggested that the book value of the factory building might be impaired due to an unexpected decline in the demand for products manufactured at the factory. Management estimated that net future cash flows over the factory's remaining useful life would be approximately $6.2M. An updated independent appraisal showed that the factory's fair value had declined to $5,672,000. Bronson decided to continue to use the factory rather than sell it and as a result, revised the factory's estimated salvage value to $240,000. Determine the impact the above transactions had on Bronson's financial statements from 20Y5 to 20Y7. Round all amounts to the nearest whole dollar. The Balance Sheet should reflect cumulative changes to the accounts. So, after the first year, these amounts will equal the change in that account since the first year, given the information you are provided (so add them together each year). List account names or transaction descriptions in the first column and amounts in the remaining columns (the first is provided for you in the Statement of Cash Flows). While you are provided with all the rows that you will need for the entire assignment (on page 2), not all columns will be used in each year. NOTE: Do the t-accounts for all three years first and then transfer your answers to the appropriate financial statements Factory Building, Net Cash Land Maintenance Expense Depreciation Expense Loss on Impairment STATEMENT OF CASH FLOWS 2045 2046 2047 For Property, Plant, or Equipment Net Cash Flows ($7,560,000) ($1,311,000 ($72,000) INCOME STATEMENT 20Y5 2046 2047 Net Income BALANCE SHEET (CUMULATIVE CHANGES - OR CHANGE IN ACCOUNT SINCE THE FIRST YEAR - SO ADDED TOGETHER) 2045 20Y6 2047 ASSETS: Change in Assets ($246.000) ($539,000) ($1,965,000) LIABILITIES + EQUITY: Change in Liabilities + Equity ($246,000) ($539.000) ($1,965,000) Please Show Calculations Below (or add additional pages if needed - and inserting pictures is acceptable)