Exercise 11-30 (Algo) Impairment; property, plant, and equipment [LO11-8] 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 $33,500,000 14,300,000 15,200,000 The fair value of the Arizona plant is estimated to be $11,500,000. Required: 1. Determine the amount of impairment loss. 2. If a loss is indicated, prepare the entry to record the loss 3.& 4. Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $12,500,000 instead of $15,200,000 and (4) $19,750,000 instead of $15,200,000. Reg 1 Req 2 Req 3 and 4 Determine the amount of impairment loss. (Negative amount should be indicated by a minus sign.) Impairment loss $ 4,000,000 Reg 1 Reg 2 Reg 3 and 4 If a loss is indicated, prepare the entry to record the loss. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet If a loss is indicated, prepare the entry to record the loss. Note: Enter debits before credits. Event General Journal Debit Credit 1 Req 1 Reg 2 Req 3 and 4 Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $12,500,000 instead of $15,200,000 and (4) $19,750,000 instead of $15,200,000. (Negative amounts should be indicated by a minus sign.) 3. Impairment loss 4. Impairment loss