I just need help figuring out the answers for "Requirement 4", thank you!
At the beginning of 2022, Metatec Incorporated acquired Ellison Technology Corporation for $560 million. In addition to cash, recelvables, and inventory, the following assets and their fair values were also acquired: 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 five-year useful life, no residual value, and is amortized using the straight-line method. At the end of 2024. a change in business elimate indicated to management that the assets of Elison might be impaired. The foliowing amounts have been determined: "After first recording any impairment losses on plant and equipment and the potent. Required: 1. Compute the book value of the plant and equipment and patent at the end of 2024 2. When should the plant and equipment and the patent be tested for impoiment? 3. When should goodwill be tested for impaliment? 4. Determine the amount of any impairment loss to be recorded, If any, for the three assets. "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 2024. 2. When should the plant and equipment and the patent be tested for impairment? 3. When should goodwill be tested for impairment? 4. Determine the amount of any impairment loss to be recorded, if any, for the three assets. 8 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Compute the book value of the plant and equipment and patent at the end of 2024. Note: Enter your answers in millions rounded to 1 decimal place. For example, 55,500,000 sheuld be entered as 15 .5. vurvinati. Fair value of Ellison Technology Corporation Book value of Ellison's net assets (excluding goodwitl) $406 million Book value of Ellison's net assets (inctuding goodwill) 430million 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 potent at the end of 2024. 2. When should the plant and equipment and the potent be tested for impairment? 3. When should goodwill be tested for impoirment? 4. Determine the amount of any impaiment loss to be recorded, if any, for the three assets: (8) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. When should the plant and equipment and the patent be tested for impaiment? vuUvesct. Fair value of Ellison Technology Corporation Book value of Ellison's net assets (exctuding goodwiti) $406 million Book value of Ellison's net assets (including gooduilt) 430 million. "After first recording any impairment losses on plant and equipment and the patent. Required: 1. Compute the book value of the plant and oquipment and patent at the end of 2024. 2. When should the plant and equipment and the patent be tested for impairment? 3. When should goodwill be tested for impairment? 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. When should goodwill be tested for impairment? UUUnAtt. Fair vatue of Eltison Technotogy Corporation Book value of Ellison's net assets (excluding goodwill) 596 nillion Book value of Ellison's net assets (including gooduitl) 439 million. After first recording amy impairment losses on plant and equipment and the patent. Required: 1. Compute the book value of the plant and equipment and potent at the end of 2024. 2. When should the plant and equipenent and the patent be tested for impeirment? 3. When should goodhill be tested for impaifment? 4. Determine the amount of any impairment loss to be tecorded, if any, for the three assets. (.) Answer is comptete but not entirely correct. Complete this question by entering your answers in the tabs below. Determine the amount of ary impairment loss to be recorded, if any, for the three assets. Wotes Enter your answers in milions rounded to 1 decimal place. For example, $5,500,000 should be entered as $55
