Exercise 11-30 (Algo) Impairment; property, plant, and equipment [LO11-8] General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product manufactured at the Arizona site, an impairment test is deemed appropriate. Management has acquired the following information the assets at the plant: Cost Accumulated depreciation General's estimate of the total cash flows to be generated by selling the products manufactured at its Arizona plant, not discounted to present value The fair value of the Arizona plant is estimated to be $11,500,000. Required: 1. Determine the amount of impairment loss. 2. If a loss is indicated, prepare the entry to record the loss. 3. & 4. Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $12,500,000 instead of $15,200,000 and (4) $19,750,000 instead of $15,200,000. Complete this question by entering your answers in the tabs below. Req 1 Req 2 $33,500,000 14,300,000 15,200,000 Req 3 and 4

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Exercise 11-30 (Algo) Impairment; property, plant, and equipment [LO11-8]
General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product
manufactured at the Arizona site, an impairment test is deemed appropriate. Management has acquired the following information fo
the assets at the plant:
Cost
Accumulated depreciation
General's estimate of the total cash flows to be generated by selling the products
manufactured at its Arizona plant, not discounted to present value
The fair value of the Arizona plant is estimated to be $11,500,000.
Required:
1. Determine the amount of impairment loss.
2. If a loss is indicated, prepare the entry to record the loss.
3. & 4. Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3)
$12,500,000 instead of $15,200,000 and (4) $19,750,000 instead of $15,200,000.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2
Req 3 and 4
Determine the amount of impairment loss. (Negative amount should be indicated by a minus sign.)
Impairment loss
< Req 1
$33,500,000
14,300,000
15,200,000
Req 2 >
Transcribed Image Text:Exercise 11-30 (Algo) Impairment; property, plant, and equipment [LO11-8] General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product manufactured at the Arizona site, an impairment test is deemed appropriate. Management has acquired the following information fo the assets at the plant: Cost Accumulated depreciation General's estimate of the total cash flows to be generated by selling the products manufactured at its Arizona plant, not discounted to present value The fair value of the Arizona plant is estimated to be $11,500,000. Required: 1. Determine the amount of impairment loss. 2. If a loss is indicated, prepare the entry to record the loss. 3. & 4. Determine the amount of impairment loss assuming that the estimated undiscounted sum of future cash flows is (3) $12,500,000 instead of $15,200,000 and (4) $19,750,000 instead of $15,200,000. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 and 4 Determine the amount of impairment loss. (Negative amount should be indicated by a minus sign.) Impairment loss < Req 1 $33,500,000 14,300,000 15,200,000 Req 2 >
Complete this question by entering your answers in the tabs below.
Req 1
If a loss is indicated, prepare the entry to record the loss. (If no entry is required for a transaction/event, select "No journal entry
required" in the first account field. Enter your answers in whole dollars.)
View transaction list
Req 2
<
Journal entry worksheet
1
Req 3 and 4
If a loss is indicated, prepare the entry to record the loss.
Event
1
Note: Enter debits before credits.
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req 1 If a loss is indicated, prepare the entry to record the loss. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Req 2 < Journal entry worksheet 1 Req 3 and 4 If a loss is indicated, prepare the entry to record the loss. Event 1 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal
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