Determine the amount of impairment loss

Assignment Help Other Subject
Reference no: EM132424276

Question - 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 impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant:

Cost - $43,500,000

Accumulated depreciation - 15,300,000

General's estimate of the total cash flows to be generated by selling the products manufactured at its Arizona plant, not discounted to present value - 17,200,000

The fair value of the Arizona plant is estimated to be $16,500,000.

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 impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $16,500,000 instead of $17,200,000 and (4) $29,150,000 instead of $17,200,000.

Reference no: EM132424276

Questions Cloud

How we should manage the information flow through Press : What are the basic rules that decision makers need to adhere to when talking to the press? Should the public rely on the press to provide accurate information?
Personnel safety issues faced by september 11th : In a minimum of 250 - 300 words, describe at least two personnel safety issues faced by September 11th first responders
Describe the role of ethics in day-to-day experiences : How would you describe the role of ethics in day-to-day experiences? What is the difference between the role of ethics
Identify personal pages that reveal information : Research a social networking site and identify personal pages that reveal information about the owner that could make them a target for burglary.
Determine the amount of impairment loss : The fair value of the Arizona plant is estimated to be $16,500,000. Determine the amount of impairment loss
Powerful effect on the success of a training event : The motivation to learn has a powerful effect on the success of a training event. The textbook outlines many factors that affect a learner
List eight types of influence tactics : List eight types of influence tactics to consider when choosing an influence tactic. Explain how one might relate to a real-world scenario professionally
Investigative technique used to trace instant message : Detail the investigative technique used to trace the instant message communication. Submit a two-page report as a Microsoft Word document, using 12-point Arial
Patient involvement in health care improvement : The call for active patient involvement in CQI activities is in line with changes to the traditional patient clinician relationship that have occurred

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd