NET ASSETS

AS OF DECEMBER 31, 2017(IN MILLIONS)

Cash $ 46

Accounts receivable 201

Property, plant, and equipment (net) 2673

Goodwill 203

Less: Notes payable (2601)

The purpose of the Carlos Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $397 million. Management has also received an offer to purchase the division for $349 million. All identifiable assets' and liabilities' book and fair value amounts are the same.

• Calculate the impairment, if any, at December 31, 2017.

Please explain every step. This is a review question for an Exam !!!