Required information (The following information applies to the questions displayed below] El Dorado Foods Inc. owns a chain of specialty stores in the Pacific Northwest. Recently, four of the stores have experienced declining profits due to market saturation in the area. As a result, management gathered data about possible impairment of the assets of the stores. The information gathered was as follows Book value: $1775 million Fair value (Present value of future cash flows) $14.95 million Undiscounted sum of future cash flows: $16.75 million Required: Determine the amount, if any, of the impairment loss that El Dorado must recognize on these assets. (Enter your answer in millions rounded to 2 decimal places (i.e. 5,500,000 should be entered es 5.50).) Impairment loss million

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below)
El Dorado Foods Inc. owns a chain of specialty stores in the Pacific Northwest. Recently, four of the stores have
experienced declining profits due to market saturation in the area. As a result, management gathered data about possible
impairment of the assets of the stores. The information gathered was as follows
Book value: $1775 million
Fair value (Present value of future cash flows): $14.95 milion
Undiscounted sum of future cash flows: $16.75 million
Required:
Determine the amount, if any, of the impairment loss that El Dorado must recognize on these assets. (Enter your answer in millions
rounded to 2 decimal places (I.e., 5,500,000 should be entered es 5.50).)
Impairment loss
million
Transcribed Image Text:Required information [The following information applies to the questions displayed below) El Dorado Foods Inc. owns a chain of specialty stores in the Pacific Northwest. Recently, four of the stores have experienced declining profits due to market saturation in the area. As a result, management gathered data about possible impairment of the assets of the stores. The information gathered was as follows Book value: $1775 million Fair value (Present value of future cash flows): $14.95 milion Undiscounted sum of future cash flows: $16.75 million Required: Determine the amount, if any, of the impairment loss that El Dorado must recognize on these assets. (Enter your answer in millions rounded to 2 decimal places (I.e., 5,500,000 should be entered es 5.50).) Impairment loss million
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