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School

San Diego State University *

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Course

201

Subject

Electrical Engineering

Date

Oct 30, 2023

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Pages

1

Uploaded by MinisterFlowerBaboon7

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6:37 PM Sun Oct 22 EEE AA & ezto.mheducation.com ¢ G Lapeer Flou & On January 1... Speedy Deli... Speedy Deli... E Transfer Ad... @ San Diego C... @ Student Sup... '::) Week 3 Cha... Module 2/Chapter 7b Submitted 6/6 Totalpoints awarded| Help 5 Part 2 of 2 [ =) 1.21.2 points awarded Ly Print O References 0 E3 Question5 -... = 20%0 ) + B Chadwick En... Exit Show correct answers LATIVIDOT /r~av \nlgv, walsuialce llll’JOll HISiiL IvoD \&=w I'U’ [The following information applies to the questions displayed below.] Southwest Services, Incorporated, operates several restaurant chains throughout the Southwest. One restaurant chain has experienced sharply declining profits. The company’s management has decided to test the operational assets of the restaurants for possible impairment. The relevant information for these assets is presented below. Book value $ 7.8 million Estimated total future cash flows 6.2 million Fair value 5.0 million Exercise 7-20 (Algo) Part 2 2. Determine the amount of the impairment loss, if any, assuming that the estimated total future cash flows are $9.0 million and the fair value is $7.2 million. (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Explanation 2. Step 1: Test for Impairment The long-term asset is not impaired since future cash flows ($9.0 million) exceed book value ($7.8 million). Step 2: If Impaired, Record Loss Since the asset does not meet the first test for impairment, no impairment loss is recorded. < Prev 5 of 5 58 Next
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