As the net book value of assets is less than future estimated cash flows, there is impairment on Division. |
a | |||
Account Titles and Explanation | Debit | Credit | |
Loss on Impairment | 160000000 | =490000000-330000000 | |
Goodwill | 160000000 | ||
b | |||
Account Titles and Explanation | Debit | Credit | |
No Entry | 0 | ||
No Entry | 0 |
Kingbird Division Net Assets As of December 31, 2020 (in millions) Cash Accounts receivable Property, plant,...
Presented below is net asset information related to the Kingbird Division of Santana, Inc. $51 Kingbird Division Net Assets As of December 31, 2020 (in millions) Cash Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets 200 2,595 201 (2,590 ) $457 The purpose of the Kingbird 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...
Presented below is net asset information related to the Shamrock Division of Santana, Inc. Shamrock Division Net Assets As of December 31, 2020 (in millions) $56 Cash Accounts receivable 205 Property, plant, and equipment (net) 2,600 Goodwill 206 Less: Notes payable (2,595) $472 Net assets The purpose of the Shamrock 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...
Presented below is net asset information related to the Teal Mountain Division of Santana, Inc. Teal Mountain Division Net Assets As of December 31, 2020 (in millions) Cash Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets $71 204 2,615 200 (2,610) $480 The purpose of the Teal Mountain 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...
Presented below is net asset information related to the Skysong Division of Santana, Inc. Skysong Division Net Assets As of December 31, 2020 (in millions) Cash $68 Accounts receivable 201 Property, plant, and equipment (net) 2,612 Goodwill 218 Less: Notes payable (2,607 ) Net assets $492 The purpose of the Skysong 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...
Presented below is net asset information related to the Windsor Division of Santana, Inc. Windsor Division Net Assets As of December 31, 2020 (in millions) $61 Cash 210 Accounts receivable Property, plant, and equipment (net) 2,605 Goodwill 211 Less: Notes payable (2,600) $487 Net assets The purpose of the Windsor 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...
Presented below is net asset information related to the Skysong Division of Santana, Inc. Skysong Division Net Assets As of December 31, 2020 (in millions) Cash $68 Accounts receivable 201 Property, plant, and equipment (net) 2,612 Goodwill 218 Less: Notes payable (2,607 ) Net assets $492 The purpose of the Skysong 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...
Presented below is information related to equipment owned by Kingbird Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $10,890,000 1,210,000 8,470,000 5,808,000 Kingbird intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $24,200. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the...
Presented below is net asset information related to the Larkspur Division of Santana, Inc. $52 Larkspur Division Net Assets As of December 31, 2020 (in millions) Cash Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets 201 2,596 202 (2,591) $460 The purpose of the Larkspur 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...
Exercise 12-14 Presented below is net asset information related to the Shamrock Division of Santana, Inc. Shamrock Division Net Assets As of December 31, 2020 (in millions) Cash Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets $56 205 2,600 206 (2,595) $472 The purpose of the Shamrock 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...
Presented below is information related to equipment owned by Swifty Company at December 31, 2020. Cost Accumulated depreciation to date Expected future net cash flows Fair value $9,270,000 1,030,000 7,210,000 4,944,000 Assume that Swifty will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020. (If no entry is required,...