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: 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:

The fair value of the Arizona plant is estimated to be $$16\mathrm{.}5$ million.

Required:

Determine the amount of impairment loss.

If a loss is indicated, prepare the entry to record the loss.

& $4.$ Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is $(3)$ $$16\mathrm{.}5$

million instead of $$17\mathrm{.}2$ million and $(4)$ $$29\mathrm{.}15$ million instead of $$17\mathrm{.}2$ million.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$

Determine the amount of impairment loss.

Note: Enter your answer in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$ Req $1$

If a loss is indicated, prepare the entry to record the loss.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your

answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$ Ren $1$

Bies $2$

Red $3$ and $4$

Cost $ $43\mathrm{.}5$ million

Accumulated depreciation $ $15\mathrm{.}3$ million

General$$s estimate of the total cash flows to be generated by selling the products

manufactured at its Arizona plant, not discounted to present value $ $17\mathrm{.}2$ million

The fair value of the Arizona plant is estimated to be $$16\mathrm{.}5$ million.

Required:

$1.$ Determine the amount of impairment loss.

$2.$ If a loss is indicated, prepare the entry to record the loss.

$3.$ & $4.$ Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is $(3)$ $$16\mathrm{.}5$ million instead of $$17\mathrm{.}2$ million and $(4)$ $$29\mathrm{.}15$ million instead of $$17\mathrm{.}2$ million.