FIX At the beginning of 2019, Metatec Inc acquired Ellison Technology Corporation for $600 million In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired Plant and equipment (depreciable assets) $ 150 million Patent 40 million Goodwill 100 million The plant and equipment are depreciated over a 10 year useful life on a straight line basis There is no estimated residual value The patent is estimated to have a 5 year useful life, no residual value, and is amortized using the straight line method At the end of 2021, a change in business climate indicated to management that the assets of Ellison might be impaired The following amounts have been determined Plant and equipment Undiscounted sum of future cash flows $ 80 million Fair value 60 million Patent Undiscounted sum of future cash flows $ 20 million Fair value 13 million Goodwill Fair value of Ellison Technology Corporation $ 450 million Book value of Ellisons net assets (excluding goodwill) 370 million Book value of Ellisons net assets (including goodwill) 470 million After first recording any impairment losses on plant and equipment and the patent Required 1 Compute the book value of the plant and equipment and patent at the end of 2021 4 Determine the amount of any impairment loss to be recorded, if any, for the three assets Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below Required 1 Required 4 Compute the book value of the plant and equipment and patent at the end of 2021 (Enter your answers in millions ) Book Value Plant and equipment $ 105 $ 16 million million Patent Required Required 4 Answer is complete but not entirely correct Complete this question by entering your answers in the tabs below Required 1 Required 4 Determine the amount of any impairment loss to be recorded, if any, for the three assets (Enter your answers in millions ) Impairment Loss Plant and equipment $ 45 million $ 0 Patent million Goodwill $ 80 million Required 1 Required 4

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FIX At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $600 million. In addition to cash, receivables, and inventory, the following assets

FIX

At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $600 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired:


Plant and equipment (depreciable assets)	$	150	million
Patent		40	million
Goodwill		100	million

The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is amortized using the straight-line method. At the end of 2021, a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined:


Plant and equipment:
Undiscounted sum of future cash flows	$	80	million
Fair value		60	million
Patent:
Undiscounted sum of future cash flows	$	20	million
Fair value		13	million
Goodwill:
Fair value of Ellison Technology Corporation	$	450	million
Book value of Ellisons net assets (excluding goodwill)		370	million
Book value of Ellisons net assets (including goodwill)		470	million*

^*After first recording any impairment losses on plant and equipment and the patent. Required:

1. Compute the book value of the plant and equipment and patent at the end of 2021. 4. Determine the amount of any impairment loss to be recorded, if any, for the three assets.

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Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 4 Compute the book value of the plant and equipment and patent at the end of 2021. (Enter your answers in millions.) Book Value Plant and equipment $ 105 $ 16 million million Patent Required Required 4 > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below Required 1 Required 4 Determine the amount of any impairment loss to be recorded, if any, for the three assets. (Enter your answers in millions.) Impairment Loss Plant and equipment $ 45 million $ 0 Patent million Goodwill $ 80 million Required 1 Required 4