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Problem 2 - PPE Impairment On September 1, 20X3, the management of Loos Moos Dairy has asked you to analyze several groups of assets for impairment. The carrying value of the net assets as of fiscal year end 12/31/2013 is listed below. Disposal of these asset eroups is expected to be completed by 4/1/2004. Each of the following groups should be considered independently. Assume the tax rate is 215 Expected income foss) from Expected gain Income (loss) from operations of (loss) on disposal Carrying value of operations of segment net assets of segment net asset group at segment net from 1/1/2014 to assets on YE 12/31/2003 assets for 20x3 4/1/2016 4/1/20x4 Group A $ 35,000 $ 55.100 $ 10,400 $ 67,200 Group B 35,000 14,600 3.9001 3,600) Group 35,000 18,500) 2.500 15.300) Group D 35,000 (10,7001 3.800 2,700 Required: al for each asset group above complete the following schedule as the basis for valuing each asset group in the financial statements for the year ending 12/31/2013 Fair value of Future cash asset group at flows from is asset group Amount of YE 12/31/2003 asset group impaired? impairment loss Group A Group Group Group D b) Use the following schedule to calculate the after-tax effect on the 2013 income statement: Group A Group Group Group Income (loss) before impairment Impairment loss Income (loss) before tax Tax (expense) benefit Net income loss c) For Group Conly, assume that the expected income from operations from 1/1/20x4 to 4/1/20X4 was actually $1,630 and that the actual loss on the disposal offwed assets was $4,850 Calculate the after-tax effect on the 20x4 income statement for Group Problem 2 - PPE Impairment On September 1, 20X3, the management of Loos Moos Dairy has asked you to analyze several groups of assets for impairment. The carrying value of the net assets as of fiscal year end 12/31/2013 is listed below. Disposal of these asset eroups is expected to be completed by 4/1/2004. Each of the following groups should be considered independently. Assume the tax rate is 215 Expected income foss) from Expected gain Income (loss) from operations of (loss) on disposal Carrying value of operations of segment net assets of segment net asset group at segment net from 1/1/2014 to assets on YE 12/31/2003 assets for 20x3 4/1/2016 4/1/20x4 Group A $ 35,000 $ 55.100 $ 10,400 $ 67,200 Group B 35,000 14,600 3.9001 3,600) Group 35,000 18,500) 2.500 15.300) Group D 35,000 (10,7001 3.800 2,700 Required: al for each asset group above complete the following schedule as the basis for valuing each asset group in the financial statements for the year ending 12/31/2013 Fair value of Future cash asset group at flows from is asset group Amount of YE 12/31/2003 asset group impaired? impairment loss Group A Group Group Group D b) Use the following schedule to calculate the after-tax effect on the 2013 income statement: Group A Group Group Group Income (loss) before impairment Impairment loss Income (loss) before tax Tax (expense) benefit Net income loss c) For Group Conly, assume that the expected income from operations from 1/1/20x4 to 4/1/20X4 was actually $1,630 and that the actual loss on the disposal offwed assets was $4,850 Calculate the after-tax effect on the 20x4 income statement for Group Problem 2 - PPE Impairment On September 1, 20X3, the management of Loos Moos Dairy has asked you to analyze several groups of assets for impairment. The carrying value of the net assets as of fiscal year end 12/31/2013 is listed below. Disposal of these asset eroups is expected to be completed by 4/1/2004. Each of the following groups should be considered independently. Assume the tax rate is 215 Expected income foss) from Expected gain Income (loss) from operations of (loss) on disposal Carrying value of operations of segment net assets of segment net asset group at segment net from 1/1/2014 to assets on YE 12/31/2003 assets for 20x3 4/1/2016 4/1/20x4 Group A $ 35,000 $ 55.100 $ 10,400 $ 67,200 Group B 35,000 14,600 3.9001 3,600) Group 35,000 18,500) 2.500 15.300) Group D 35,000 (10,7001 3.800 2,700 Required: al for each asset group above complete the following schedule as the basis for valuing each asset group in the financial statements for the year ending 12/31/2013 Fair value of Future cash asset group at flows from is asset group Amount of YE 12/31/2003 asset group impaired? impairment loss Group A Group Group Group D b) Use the following schedule to calculate the after-tax effect on the 2013 income statement: Group A Group Group Group Income (loss) before impairment Impairment loss Income (loss) before tax Tax (expense) benefit Net income loss c) For Group Conly, assume that the expected income from operations from 1/1/20x4 to 4/1/20X4 was actually $1,630 and that the actual loss on the disposal offwed assets was $4,850 Calculate the after-tax effect on the 20x4 income statement for Group Problem 2 - PPE Impairment On September 1, 20X3, the management of Loos Moos Dairy has asked you to analyze several groups of assets for impairment. The carrying value of the net assets as of fiscal year end 12/31/2013 is listed below. Disposal of these asset eroups is expected to be completed by 4/1/2004. Each of the following groups should be considered independently. Assume the tax rate is 215 Expected income foss) from Expected gain Income (loss) from operations of (loss) on disposal Carrying value of operations of segment net assets of segment net asset group at segment net from 1/1/2014 to assets on YE 12/31/2003 assets for 20x3 4/1/2016 4/1/20x4 Group A $ 35,000 $ 55.100 $ 10,400 $ 67,200 Group B 35,000 14,600 3.9001 3,600) Group 35,000 18,500) 2.500 15.300) Group D 35,000 (10,7001 3.800 2,700 Required: al for each asset group above complete the following schedule as the basis for valuing each asset group in the financial statements for the year ending 12/31/2013 Fair value of Future cash asset group at flows from is asset group Amount of YE 12/31/2003 asset group impaired? impairment loss Group A Group Group Group D b) Use the following schedule to calculate the after-tax effect on the 2013 income statement: Group A Group Group Group Income (loss) before impairment Impairment loss Income (loss) before tax Tax (expense) benefit Net income loss c) For Group Conly, assume that the expected income from operations from 1/1/20x4 to 4/1/20X4 was actually $1,630 and that the actual loss on the disposal offwed assets was $4,850 Calculate the after-tax effect on the 20x4 income statement for Group
