Exercise $11-30($Algo$)$ Impairment; property, plant, and equipment $[$LO$11-8]$

General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product manufactured at the Arizona site, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant:

Cost

Accumulated depreciation

General's estimate of the total cash flows to be generated by selling the products manufactured at its Arizona plant; not discounted to present value

$$33\mathrm{.}5$ million

$$14\mathrm{.}3$ million

$$15\mathrm{.}2$ million

The fair value of the Arizona plant is estimated to be $$11\mathrm{.}5$ million.

Required:

Determine the amount of impairment loss.

If a loss is indicated, prepare the entry to record the loss.

& $4.$ Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is $(3)$ $$12\mathrm{.}5$ million instead of $$15\mathrm{.}2$ million and $(4)$ $$19\mathrm{.}75$ million instead of $$15\mathrm{.}2$ million.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$

Req $3$ and $4$

Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is $(3)$ $$12\mathrm{.}5$

million instead of $$15\mathrm{.}2$ million and $(4)$ $$19\mathrm{.}75$ million instead of $$15\mathrm{.}2$ million.

Note: Enter your answer in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

$\backslash$table$[[3.$ Impairment loss,,million$],[4.$ Impairment loss,$0\mathrm{.}0,$million$]]$

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