Problem 3 Sanders Corporation operates a factory in Arizona. Due to a change in business climate, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant: $243,000,000 Cost Accumulated depreciation Estimate of the total cash flows to be generated by selling the products manufactured at the Arizona factory, not discounted to present value 122,000,000 110,000,000 94,000,000 90,000,000 Present value of estimated future cash flows Estimated fair value of the Arizona factory determined by appraisal Required: 1. Determine the amount of impairment loss, if any. 2. If a loss is indicated, prepare the entry to record the loss Problem 4 Kentfield Corporation has $260 million of goodwill on its book from the 2015 acquisition of Seaford Shipping. At the end of its 2018 fiscal year, management has provided the following information for a required goodwill impairment test ($ in millions): $810 Fair value of Seaford (approximates fair value less costs to sellI) Fair value of Seaford's net asssets (excluding goodwill) Book value of Seaford's net assets (including goodwill) 650 850 Present value of estimated future cash flows 825 Required: Assuming that Seaford is considered a reporting unit for U.S. GAAP, determine the amount of goodwill impairment loss that Kentfield should recognize