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At the beginning of 2014, Ross Technology, Inc. acquired the Valpo Corporation for $350 million. In addition to cash, receivables, and inventory, the following allocations were made:

Plant and equipment (depreciable assets) $120 million

Developed technology 60 million

Goodwill 80 million

The plant and equipment is depreciated over an 8-year useful life on a straight-line basis. There is no estimated residual value. The purchased technology is estimated to have a 6-year useful life, no residual value, and is amortized using the straight-line method.

At the end of 2016, a change in business climate indicated to management that the property, plant, and equipment and intangible assets of Valpo might be impaired. The following amounts have been determined:

Plant and equipment:

Undiscounted sum of future cash flows $65 million

Fair value 50 million

Developed technology:

Undiscounted sum of future cash flows $15 million

Fair value 10 million

Goodwill:

Fair value of Valpo $300 million

Fair value of Valpos net assets (excluding goodwill) 250 million

Book value of Valpos net assets (including goodwill) 310 million *

*After first recording any impairment losses on plant and equipment and the patent.

Required:

Compute the book value of the plant and equipment and developed technology at the end of 2016.

When should the plant and equipment and the purchased technology be tested for impairment?

When should goodwill be tested for impairment?

Determine the amount of any impairment loss to be recorded, if any, for the three assets

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