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At the beginning of $2022,$ Metatec Incorporated acquired Ellison Technology Corporation for $$600$ million. In addition to cash,

recelvables, and inventory, the following assets and their fair values were also acquired:

Plant and equipment $($depreclable assets$)$

Patent

$ $150$ million

$40$ million

$100$ million

The plant and equipment are depreciated over a $10-$year useful life on a straight$-$line basis. There is no estimated residual value. The

patent is estimated to have a five$-$year useful life, no residual value, and is amortized using the straight$-$ine method.

At the end of $2024,$ a change in business climate indicated to management that the assets of Ellison might be impaired. The following

amounts have been determined:

Plant and equipment:

Undiscounted sum of future cash flows $\backslash$ $ million

Patent:

Undiscounted sum of future cash flows $\backslash$ $ million

Fair value $\backslash \backslash \backslash \backslash \backslash \backslash \backslash \backslash \backslash \backslash$llion

Goodwill:

Fair value of Ellison Technology Corporation

Book value of Ellison's net assets $($excluding goodive $($ing$)$

Book value of Ellison's net assets $($including goodwill$)470$ million

$470$ 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 patent at the end of $2024.$

When should the plant and equipment and the patent be tested for impaliment?

When should goodwill be tested for impalirment?

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

Complete this question by entering your answers in the tabs below.

Compute the book value of the plant and equipment and patent at the end of $2024.$

Note: Enter your answers in millions.

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