Required: 1. Determine the amount of the Impairment loss. 2. Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $9.6 million and air value is $6.4 million. Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place. (I.e.. 5.500,000 should be entered as 5.5)). 1. Impairment loss 2. Impairment loss million million
Required: 1. Determine the amount of the Impairment loss. 2. Determine the amount of the impairment loss assuming that the estimated undiscounted sum of future cash flows is $9.6 million and air value is $6.4 million. Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place. (I.e.. 5.500,000 should be entered as 5.5)). 1. Impairment loss 2. Impairment loss million million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 11-27 (Algo) Impairment; property, plant, and equipment [LO11-8]
Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest. Three of its restaurants located in the center of a
large urban area have experienced declining profits due to declining population. The company's management has decided to test the
assets of the restaurants for possible Impairment. The relevant information for these assets is presented below.
Book value
Estimated undiscounted sum of future cash flows
Fair value
Required:
1. Determine the amount of the Impairment loss.
2. Determine the amount of the Impairment loss assuming that the estimated undiscounted sum of future cash flows is $9.6 million and
fair value is $6.4 million.
$9.3 million
5.4 million
4.9 million
(Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place, (1.e..
5,500,000 should be entered as 5.5)).
1. Impairment loss
2. Impairment loss
million
milion](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F9d930fce-c734-43ff-93bc-0e8281a1eb63%2Fw027kq_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 11-27 (Algo) Impairment; property, plant, and equipment [LO11-8]
Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest. Three of its restaurants located in the center of a
large urban area have experienced declining profits due to declining population. The company's management has decided to test the
assets of the restaurants for possible Impairment. The relevant information for these assets is presented below.
Book value
Estimated undiscounted sum of future cash flows
Fair value
Required:
1. Determine the amount of the Impairment loss.
2. Determine the amount of the Impairment loss assuming that the estimated undiscounted sum of future cash flows is $9.6 million and
fair value is $6.4 million.
$9.3 million
5.4 million
4.9 million
(Negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 1 decimal place, (1.e..
5,500,000 should be entered as 5.5)).
1. Impairment loss
2. Impairment loss
million
milion
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