1. Impairment of Finite Lived Assets. Illumination Inc. owns a factory in Renton, Washington that makes light bulbs. During 2018, due to increased competition from LED manufacturers, the company determined that an impairment test was appropriate. Management has prepared the following information for the assets of the factory (In $millions).

Cost of Factory Assets $680

Accumulated Depreciation 450

Net Book Value $230

Estimated future undiscounted cash

flow from the factory $200

Fair value of factory assets $180

1. Perform the impairment test for these factory assets, clearly labeling your work between Step #1 and Step #2

2. Prepare the journal entry to record the impairment, if one exists.