E $11-27$ Impairment; property, plant, and equipment $$ LO$11-8$

Chadwick Enterprises, Inc., operates several restaurants throughout 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

$2024.$

Required:

Determine the amount of the impairment loss, if any, reported in the $2024$ income statement.

Determine the reported book value of the assets in the year$-$end $2024$ balance sheet.

Repeat requirements $1$ and $2,$ assuming that the estimated undiscounted sum of future cash flows is $$6\mathrm{.}8$ million and fair value is

$$5$ million.