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Chadwick Enterprises, Incorporated, operates several restaurant iroughout the Midwest. Three of its restaurants located in the center of a large urban area have experienced declining
Chadwick Enterprises, Incorporated, operates several restaurant iroughout the Midwest. Three of its restaurants located in the center of a large urban area have experienced declining profits due to declining population. The company's management has decided to test the assets of the restaurants for possible impairment. The relevant information for these assets is presented below at the end of
Book value
Estimated undiscounted sum of future cash flows
$ million
Fair value
million
million
Requlred:
Determine the amount of the impairment loss, if any, reported in the income statement.
Determine the reported book value of the assets in the yearend balance sheet
Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $ million and fair value is $ million.
Note: Enter your answers In mililons rounded to declmol place, e should be entered as
table Impairment loss,,million Book value,,million Impairment loss,,million
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