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Presented below is net asset information related to the Skysong Division, Inc.

SKYSONG DIVISION
NET ASSETS
AS OF DECEMBER 31, 2017
(IN MILLIONS)
Cash $64
Accounts receivable 213
Property, plant, and equipment (net) 2,608
Goodwill 214
Less: Notes payable (2,603)
Net assets $496
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 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. All identifiable assets’ and liabilities’ book and fair value amounts are the same.
Required:
a. Prepare the journal entry to record the impairment at December 31, 2017. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

User Pmichna
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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

Presented below is net asset information related to the Skysong Division, Inc. SKYSONG-example-1
User Daniyal Ahmed
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