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 Accumulated depreciation 38.5 million General's estimate of the total cash flows to be generated by selling the products 14.8 million manufactured at its Arizona plant, not discounted to present value 16.2 million The fair value of the Arizona plant is estimated to be $14 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) $15 millio instead of $16.2 million and (4) $24.35 million instead of $16.2 million. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 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 5.5). 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: CostAccumulateddepreciationGeneralsestimateofthetotalcashflowstobegeneratedbysellingtheproductsmanufacturedatitsArizonaplant,notdiscountedtopresentvalue$38.5million$14.8million$16.2million The fair value of the Arizona plant is estimated to be $14 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) $15 million instead of $16.2 million and (4) \$24.35 million instead of $16.2 million. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 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 5.5). 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: CostAccumulateddepreciationGeneralsestimateofthetotalcashflowstobegeneratedbysellingtheproductsmanufacturedatitsArizonaplant,notdiscountedtopresentvalue$38.5million$14.8million$16.2million The fair value of the Arizona plant is estimated to be $14 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) $15 million instead of $16.2 million and (4) $24.35 million instead of $16.2 million. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $15 million instead of $16.2 million and (4) $24.35 million instead of $16.2 million. Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5)
