The Blueberry Phone Company operates a factory to build its Crackberry phone. Technological advances by Blueberrys competitors demolished Crackberry sales. Consequently, management is evaluating the Crackberry factory for impairment as of December 31, 2014. Below are facts about the factory. Original cost $150 million Accumulated depreciation 65 million Future cash flows: 2015 45 million 2016 20 million 2017 10 million Is factory impaired? ____________ Why? ________________________________________________

What is the present value of future cash flows rounded to $100,000 (Assume the cash is received at the end of each year and use an interest rate of 10%.):

2015 ________________________________

2016 ________________________________

2017 ________________________________

Total ________________________________

What is the impairment loss?