AE12-25 - AE12-15 Correct. (Goodwill Impairment) Presented...

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AE12-15 Correct. (Goodwill Impairment) Presented below is net asset information related to the Mischa Division of Santana, Inc. Mischa Division Net Assets as of December 31, 2010 (in millions) Cash $ 63 Receivables 207 Property, plant, and equipment (net) 2,608 Goodwill 207 Less: Notes payable (2,692) Net assets $ 393 The purpose of the Mischa 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 $398 million. Management has also received an offer to purchase the division for $334 million. All identifiable assets' and liabilities' book and fair value amounts are the same. (a) Prepare the journ al entry (if any) to record the impairment at December 31, 2010. (Do not round the a for the amount.) Account/Description
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This note was uploaded on 11/30/2011 for the course ACC 101 taught by Professor B during the Spring '09 term at CUNY Baruch.

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AE12-25 - AE12-15 Correct. (Goodwill Impairment) Presented...

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