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Question 5 ol 6 The purpose of the Windsor Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be
Question 5 ol 6 The purpose of the Windsor 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 $323 million Management has also received an offer to sell the division for $284 million. The book values and fair values are equal for all identifiable assets and liabilities. (a) Prepare the journal entry to record the impairment at December 31, 2020. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit Debit Account Titles and Explanation Presented below is net asset information related to the Windsor Division of Horton, Inc. Windsor Division Net Assets As of December 31, 2020 (in millions) $50 Cash 151 Receivable Property, plant, and equipment (net) 2086 159 Goodwill (2.161) Less: Notes payable $285 Net assets The baserfth-Windsor je tridevelop anticlear-wpred aircraft If successful traveling delavc associated with re
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