SKM1: Goodwill Impairment Goodwill Impairment Data Preliminary December 31, 2021, Property, Plant, and Equipment Information TL Corporation Fixed Asset Impairment Tests FYE December 31, 2021 Asset Book Value Fair Market Grouping Value Sum of UFCF* Step 1* * Step 2** * $3,580,000 $3,330,000 $3,840,000 No O 840,000 730,000 680,000 Yes $ 1 10,000 2,700,000 2,900,000 3,100,000 3,800,000 3,930,000 4,180,000 N 2,080,000 2,150,000 2,460,000 Jo 900,000 700,000 760,000 Yes $200, 00 0 1, 100,000 960,000 880,000 Yes P140,000 Total $15,000,000 $14,700,000 $15,900,000 8450, DO0 *Sum of UFCF = sum of undiscounted future cash flows **Step 1: Determine if there is an impairment loss. Is the sum of UFCF less than book value? ***Step 2: Calculate impairment loss.SKM1: Goodwill Impairment Goodwill Impairment Data Preliminary December 31, 2021, Inventory Information TL Corporation Lower-of-Cost-or-Market Analysis FYE December 31, 2021 Cost NRV NRV - NPM Market Loss $3,800,000 $3,300,000 $4,000,000 $2,800,000 3,30 0, 00 0 7500,000 Definitions: Cost = dollar-value LIFO cost reported on the balance sheet RC = replacement cost NRV = net realizable value NRV - NPM = net realizable value adjusted for normal profit margin Market = designated market value (the greater of RC and NRV-NPM) Loss = difference between cost and market columns when market is Lower