68 Book Value of these assets stands at $17.5 million Required: Assess and calculate the impairment loss, if any, that Atlantis Seafoods Co. must recognize for these assets Note: Enter your answer in millions rounded to 1 decimal place (.e., 5,500,000 should be entered as 5.5).
68 Book Value of these assets stands at $17.5 million Required: Assess and calculate the impairment loss, if any, that Atlantis Seafoods Co. must recognize for these assets Note: Enter your answer in millions rounded to 1 decimal place (.e., 5,500,000 should be entered as 5.5).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Calculate impairment loss
Transcribed Image Text:Atlantis Seafoods Co. a company renowned for its specialty seafood stores, recently observed a downturn in profits at four of its
outlets. This decline has been attributed to an over-saturated market in these areas. Consequently, the management team initiat
evaluation to determine if there's a need to recognize impairment on the assets of these affected stores. The following data was
compiled
Projected undiscounted cash flows from these assets are estimated to be $16.5 million
Current market assessments place the fair value of these assets at $14.9 million.
The recorded book value of these assets stands at $12.5 million
Required:
Assess and calculate the impairment loss, if any, that Atlantis Seafoods Co. must recognize for these assets
Note: Enter your answer in millions rounded to 1 decimal place (.e., 5,500,000 should be entered as 5.5).
million
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