Presented below is net asset information related to the Sage Hill Division of Santana, Inc.

SAGE HILL DIVISION NET ASSETS AS OF DECEMBER 31, 2017 (IN MILLIONS)
Cash		$66
Accounts receivable		215
Property, plant, and equipment (net)		2,610
Goodwill		216
Less: Notes payable		(2,605	)
Net assets		$502

The purpose of the Sage Hill 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 $435 million. Management has also received an offer to purchase the division for $330 million. All identifiable assets and liabilities book and fair value amounts are the same.

Prepare the journal entry to record the impairment at December 31, 2017.

At December 31, 2018, it is estimated that the divisions fair value increased to $345 million. Prepare the journal entry to record this increase in fair value.