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Please look over my answeres and let me know if I am correct or wrong and what do I need to change, thank you! General
Please look over my answeres and let me know if I am correct or wrong and what do I need to change, thank you!
General Optic Corporation operates a manufacturing plant in Aizona. Due to a sigrificant decline in demand for the product manufactured at the Arizona site, an impairment test is deemed appropeiate Management has acquired the following information for the assets at the plant Cost Accumulated depreciation General's estimate of the total cash flows to be generated by selling the $42,500,000 15,200,000 products manufactured at its Arizona plant, not discounted to present value 17,000,000 The fair value of the Arizona plant is estimated to be $16,000,000. Required: 1. Determine the amount of impairment loss. (Enter your answer in whole dollars.) irment I S 11,300,000 2. If a loss is indicated, where would it appear in General Optic's multiple-step income statement? Operating expenses O Non-operating expenses 3. If a loss is indicated, prepare the entry to record the loss. (I no entry is required for an event, select No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list View journal entry worksheet Debit 11,300,000 15,200,000 Event General Journal Credit Loss on impairment Accumulated depreciation Plant assets 26 500,000
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