Problem Two: Depreciation, Goodwill, and Impairment Loss (4 points) At the beginning of 2020, Lincoln Inc. acquired Avales Technology Corporation for $600 million. In addition to cash, receivables, and inventory, the following assets and their fair values were also acquired: Plant and equipment (depreciable assets) $150 million Patent 40 million Goodwill 100 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 2022, a change in business climate indicated to management that the assets of Avalee might be impaired. The following amounts have been determined: Plant and equipment: Undiscounted sum of future cash flows S80 million Fair value 60 million Patent: Undiscounted sum of future cash flows S 20 million Fair value 13 million Goodwill: Fair value of Avales Technology Corporation S450 million Fair value of Avalee's net assets (excluding goodwill) 390 million Book value of Avales's net assets (including goodwill) 470 million* *After first recording any impairment losses on plant and equipment and the patent. Required: 1. Compute the book value of the plant and equipment and patent at the end of 2022. When should the plant and equipment and the patent be tested for impairment? 3. When should goodwill be tested for impairment? 4. Determine the amount of any impairment loss to be recorded, if any, for the three assets