Property. Plant, and Equipment: Depreciation and Depletion 557 Girard Corporation has just completed the acquisition of Williams, Inc., at a significantly higher than the fair values of the identifiable assets. Describe the audit issues caused by the acquisition and how the auditors would likely resolve the issues,- purchase price You are part of the audit team that is auditing Happy Chicken, Inc., a company that franchises Happy Chicken family restaurants. During the current year, management of Happy Chicken purchased for $2 million one of its franchised locations, difficulties. In performing its analysis for impairment of assets at year-end, management of Happy Chicken determined that the carrying value of the asset may not be recoverable. As a result, management developed cash flow model. The estimated fair value of the location was determined to be $1.5 million. which resulted in an a store that was having financial estimate of the fair value of the location using a discounted an 3 impairment loss of about $500,000. The undiscounted fature cash flows are equal to $1.7 million, State why the audit of fair values is often difficult. b. Describe how you might approach the audit of the impairment loss in this situation. If you decide to use the work of a valuation specialist to audit the estimate of fair value describe your responsibilities with respect to using the specialist's work. a. underlie Happy Chicken man- significant assumptions ihat you would expect to d. List two agement's estimate of the fair value of its recently purchased franchise location. e. For the significant assumptions that you identified in (d), describe the types of evidence that you would expect to examine in order to support those assumptions