Determine whether graham top menswear assets are impaired

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Graham Top Menswear, Ltd, reported net plant and equipment of $1,618,000. these assets cost $2,522,000 with accumulated depreciation taken to date of $904,000. Base don recently assessed negative evidene, Graham's top management conclude that its plant assets might be impaired. graham Top estimate totals exceed future cash flows from use of the assets as only $1,315,000 and appraises the fair value of the asset at $1,010,000. Are the company assets impaired? If there is an impairment loss, prepare the journal entry necessary to record the impairment.

Problem 1: Conduct the impairment test for plant and equipment at the end of the year to determine whether Graham Top Menswear assets are impaired.

Reference no: EM132744742

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