Impairment of Intangible Assets Q: Presented below is net asset information related to the Mischa Division of Santana, Inc. as of December 31, 2010 (in millions): $ Cash Receivables Property, plant, and equipment, net Goodwill Less: Notes payable Net assets 60 200 2,600 200 (2,700) 360 $ Management estimated its future net cash flows from the division to be $400 million. Management has also received an offer to purchase the division for $335 million. All identifiable assets' and liabilities' book and fair value amounts are the same. (a) Prepare the journal entry (if any) to record the impairment at December 31, 2010. (b) (b) At December 31, 2011, it is estimated that the division's fair value increased to $345 million. Prepare the journal entry (if any) to record this increase in fair value. 12-24