Chadwick Enterprises, Incorporated, operates several restaurants throughout the Midwest. Three of its restaurants located in the
center of a large urban area have experienced declining profits due to declining population. The company's management has decided
to test the assets of the restaurants for possible impairment. The relevant information for these assets is presented below at the end of
Book value
$ million
Estimated undiscounted sum of future cash flows
million
Fair value
million
Required:
Determine the amount of the impairment loss, if any, reported in the income statement.
Determine the reported book value of the assets in the yearend balance sheet.
Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $ million
and fair value is $ million.
Note: Enter your answers in millions rounded to decimal place, ie should be entered as
