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 an existing building. According to independent appraisals at the time of purchase, the fair value of the building was $6.4M and hte 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 20Y5, $64,000 during 20Y6, and $72,000 during 20Y7. - In early January 20Y6, Bronson spent $1,247,000 on factory renovations to make future operations more efficient. - In early January 20Y7, Bronson's auditors suggested that the book value of teh 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. These amounts will not necessarily equal the December 31 ending balances in the balance sheet accounts. NOTE: Do the t-accounts for all three years first and then transfer your answers to the appropriate financial statements. STATEMENT OF CASH FLOWS 20Y5 20Y6 20Y7 INCOME STATEMENT 20Y5 20Y6 20Y7 BALANCE SHEET (CUMULATIVE CHANGES) 20Y5 20Y6 20Y7 - ASSETS 20Y5 20Y6 20Y7 - change in assets - LIABILITIES + EQUITY 20Y5 20Y6 20Y7 - change in liabilities + equity