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	$	52,500,000
Accumulated depreciation		16,200,000
Generals estimate of the total cash flows to be generated by selling the products manufactured at its Arizona plant, not discounted to present value		19,000,000

The fair value of the Arizona plant is estimated to be $21,000,000.

Determine the amount of impairment loss. If a loss is indicated, where would it appear in General Optics multiple-step income statement? (Enter your answer in whole dollars.)

Impairment loss
Location on income statement

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.)

Journal entry worksheet

Record the impairment loss.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1

Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is $21,000,000 instead of $19,000,000 and $36,550,000 instead of $19,000,000. (Enter your answers in whole dollars.)

Impairment loss
Impairment loss