Problem 11-12 Depreciation and amortization; impairment [L011-2, 11-4,11-8] At the beginning of 2016, Metatec Inc. acquired Ellison Technology Corporation for $500 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $140 million Patent Goodwil 30 million 120 million The plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is amortized using the straight-line method. At the end of 2018, a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined