Exercise 11-30 (Algo) Impoirment; property, plant, and equipment [LO11-8] General Optic Corporation operates a manufacturing...
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Exercise 11-30 (Algo) Impoirment; property, plant, and equipment [LO11-8] General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product manufactured at the Arizona site, an impaiment test is deemed appropriate. Management has acquired the following informati the assets at the plant: Cost. Accunulated depreciation General's estimate of the total cash flows to be generated by selling the products nanufactured at its Arlzona plant, fot discounted to present value $43.5 million $15,3 militon 317.2 million The fair value of the Arizona plant is estimated to be $16.5 million Required: 1. Determine the amount of impairment loss: 2. If a loss is indicated, prepare the entry to record the loss. 3. \& 4. Determine the amount of impaiment loss assuming that the estimated undiscounted sum of future cash flows is (3) $16.5 mallion instead of $17.2 milion and (4) $2915 million instead of $172 million. Complete this question by entering your onswers in the tabs below. If a loss is indicated, prepare the entry to record the loss. millions rounded to 2 decimal place (i.e, 5,500,000 shoutd be entered as 5.5 )
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