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Wicker Corporation operates a manufacturing plant in California. Due to a change in the business climate, an impairment test is deemed appropriate. Management has acquired
Wicker Corporation operates a manufacturing plant in California. Due to a change in the business climate, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant: Cost Accumulated depreciation Wicker's estimate of the total cash flows to be generated by selling $ 58,500,000 26,400,000 the products manufactured at its California plant, not discounted to 30,000,000 present value The fair value of the California plant is estimated to be $24,000,000. Required: A. Determine the amount of impairment loss if any. B. If a loss is indicated, where would it appear in Wicker's multiple-step income statement? C. If a loss is indicated, prepare the entry to record the loss. D. Repeat requirement 1, assuming that the estimated undiscounted sum of future cash flows is $27,000,000 instead of $30,000,000. E. Repeat requirement 1, assuming that the estimated undiscounted sum of future cash flows is $34,000,000 instead of $30,000,000. Edit View Insert Format Tools Table 12pt Paragraph BIUA D
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