Part B

Presented below is net asset information related to the Solish Brothers Division of Santana, Inc Splish Brothers Division Net Assets As of December 31, 2020 (in millions) Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets 569 202 2,613 219 (2 505) 1495 The purpose of the Splish Brothers 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 $440 milion Management has also received an offer to purchase the division for $335ion (deemed an appropriate fair value). All identifiable assets and liabilities' book and fair value amounts are the same Your answer is correct s a for the amount Credit account Prepare the journal entry to record the impairment at December 1, 2020. (If no entry is required, select "No Entry for the account i titles are automatically indented when amount is entered Denetindent manually) Account Titles and Explanation Debit Credit Los on Impairment Goodwill 160 Click if you would like to show Work for this suestioni on Show Work 2019 RADI (b) At December 31, 2021, it is estimated that the division's fair value increased to $348 million. Prepare the journal entry to record this increase in fair value. (Ir ne entry is required, select "No Entry for the account titles and enter for the amounts, Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Tities and Explanation Debit Credit Click if you would like to show Work for this questioni Deen Show Work