- Patent, $100 million - Goodwill, \$100 million The plant and equipment are depreciated over a 15-year useful life on a straight-line basis; there is no estimated residual value. The patent is estimated to have a 3-year useful life, no residual value, and is amortized using the straight-line method. At the end of 2022, a change in business climate indicated to management that the assets of Celes Chere might be impaired. The following amounts have been determined: - Plant and equipment: - Undiscounted sum of future cash flows, $80 million o Fair value, \$60 million - Patent: - Undiscounted sum of future cash flows, $80 million - Fair value, \$73 million - Goodwill: - Fair value of Celes Chere, Inc., $450 million - Book value of Celes Chere's net assets (including goodwill), $530 million Required: 1. Compute the book value at the end of 2022 for the assets, (a) the plant and equipment, (b) the patent, and (c) the goodwill. 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 impairment loss to be recorded, if any, for (a) the plant and equipment, (b) the patent, and (c) the goodwill