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Exercise 12-14 Presented below is net asset information related to the Skysong Division of Santana, Inc SKYSONG DIVISION NET ASSETS AS OF DECEMBER 31, 2017
Exercise 12-14 Presented below is net asset information related to the Skysong Division of Santana, Inc SKYSONG DIVISION NET ASSETS AS OF DECEMBER 31, 2017 (IN HILLIONS) Cash Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets $68 201 2,612 218 (2,607) $492 The purpose of the Skysong Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from te project to be $425 million. Management has also received an offer to purchase the division for 330 million. All identifiable assets, and liabilities' book and fair value amounts are the same Prepare the journal entry to record the impairment at December 31, 2017, (If no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually,) Account Titles and Explanation Debit Credit
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