f Ch 12: Homework Question 6 of 9

Ch 12: Homework Question 6 of 9 The following is net asset information for the Dhillon Division Of Klaus Inc.. NET ASSETS as at December 31, 2020 (in millions) Cash Aca'unt_s receivable Property. plant, and equipment (net) Goodwill Less: Notes payable Net assets BOO k Value $54 2.642 {2.608 i 515 Fair Value Excluding Goodwill $54 2.803 (2.608 ) The purpose Of the Dhillon Division identified as a reporting unit ur eashgenerating unit) is develop a aircraft. It successful. travelling delays that are associated with refuelling could be greatly reduced. and operational efficiency would increase significantly. To date. management has not had much success and is deciding whether a writedown is appropriate at this time. Management has prepared the following estimates for the reporting unit or cash-generating unit; I. 2. 3. Undiscounted future net cash flows arc approximately $415 million. Future value in use is approximately $509 million. Sale of the unit would yield $340 million and selling costs would total $8 million.