Exercise 7-20

Required information Exercise 7-20 (Algo) Calculate impairment loss (LO7-8) [The following information applies to the questions displayed below] Northeast Services, Incorporated, operates several restaurant chains throughout the Northeast. One restaurant chain has experienced sharply declining profits. The company's management has decided to test the operational assets of the restaurants for possible impairment. The relevant information for these assets is presented below. Exercise 7-20 (Algo) Part 1 Required: 1. Determine the amount of the impalrment loss, if any. (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Exercise 7-20 (Algo) Calculate impairment loss (LO7-8) The following information applies to the questions displayed below] Northeast Services, Incorporated, operates several restaurant chains throughout the Northeast. One restaurant chain has experienced sharply declining profits. The company's management has decided to test the operational assets of the restaurants for possible impairment. The relevant information for these assets is presented below. Exercise 7-20 (Algo) Part 2 2. Determine the amount of the impairment loss, if any, assuming that the estimated total future cash flows are $9.9 million and the fair value is 58.1 milition. (Enter your answer in millions rounded to 1 decimal place (1.e.,5,500,000 should be entered as 5.5 ).)