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El Dorado Foods Inc. owns a chain of specialty stores. Recently, some of the stores have experienced declining profits due to market saturation in the

El Dorado Foods Inc. owns a chain of specialty stores. Recently, some of the stores have experienced declining profits due to market saturation in the area. As a result, management gathered data about possible impairment of tangible operational assets. The information gathered was as follows:

Book value: $175 million

Fair value: $170 million

Undiscounted sum of future cash flows: $185 million

requirements: Show part 1 and part 2 of the impairment test and record the journal entry, if any

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