Current Attempt in Progress Presented below is net asset information related to the Marin Division of Santana, Inc. Cash Marin Division Net Assets As of December 31, 2025 (in millions) Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets (a) -w Transcribed Text $64 213 2,608 The purpose of the Marin Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $430 million Management has also received an offer to purchase the division for $335 million (deemed an appropriate fair value). All identifiable assets and liabilities' book and fair value amounts are the same. Account Titles and Explanation 214 (2,603) $496 Prepare the journal entry to record the impairment at December 31, 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) Debit Credit
Current Attempt in Progress Presented below is net asset information related to the Marin Division of Santana, Inc. Cash Marin Division Net Assets As of December 31, 2025 (in millions) Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets (a) -w Transcribed Text $64 213 2,608 The purpose of the Marin Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $430 million Management has also received an offer to purchase the division for $335 million (deemed an appropriate fair value). All identifiable assets and liabilities' book and fair value amounts are the same. Account Titles and Explanation 214 (2,603) $496 Prepare the journal entry to record the impairment at December 31, 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Presented below is net asset information related to the Marin Division of Santana, Inc.
Cash
Marin Division
Net Assets
As of December 31, 2025
(in millions)
Accounts receivable
(a)
Property, plant, and equipment (net)
Goodwill
Less: Notes payable
Net assets
ow Transcribed Text
$64
213
Account Titles and Explanation
2,608
The purpose of the Marin Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling
could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding
whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $430 million.
Management has also received an offer to purchase the division for $335 million (deemed an appropriate fair value). All identifiable
assets and liabilities' book and fair value amounts are the same.
214
(2,603)
$496
C
Prepare the journal entry to record the impairment at December 31, 2025. (If no entry is required, select "No Entry" for the account
titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List
debit entry before credit entry)
Debit
Credit
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