Goodwill 100 million The plant and equipment are depreciated over a 10-year useful life on a straight-ine 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 Fair value Patent $ 80 million 60 million Undiscounted sum of future cash flows Fair value Goodwil1: Fair value of Ellison Technology Corporation Book value of Ellison's net assets (excluding goodwill) Book value of Ellison's net assets (including goodwill) $ 20 million 13 million 450 million 370 million 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 Complete this question by entering your answers in the tabs below Required 1Requiret 4 Problem 11-12 Depreciation and amortization; impairment [L011-2, 11-4,11-8 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: 150 mil1ion 40 million Plant and equipment (depreciable assets) Patent Goodwi11 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 Fair value Patent: Undiscounted sum of future cash flows Fair value Goodwill Fair value of Ellison Technology Corporation Book value of E11ison's net assets (excluding goodwl11) Book value of Ellison's net assets (including goodwi11) s 80 million 60 million s20 million 13 million 450 mi11ion 70 million 470 million After first recording any impairment losses on plant and equipment and the patent Required: 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 Complete this question by entering your answers in the tabs below. Required 1Required 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 S 105 million Patent $ 16 million
