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Presented below is net asset information related to the Larkspur Division of Horton, Inc. The purpose of the Larkspur division is to develop a nuclear-powered
Presented below is net asset information related to the Larkspur Division of Horton, Inc. The purpose of the Larkspur 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 $317 million. Management has also received an offer to sell the division for $312 million. The book values and fair values are equal for all identifiable assets and liabilities. (a) Prepare the journal entry (if any) to record the impairment at December 31, 2025. (Enter amounts in millions. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.)
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