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Determine the amount of the impairment loss

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Assignment

hadwick Enterprises, Inc., 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.

 

  Book value

$

9.7

 million

  Estimated undiscounted sum of future cash flows

 

5.6

 million

  Fair value

 

5.1

 million

Required:

1. Determine the amount of the impairment loss. (Enter your answer in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).)

Reference no: EM131785364

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