Business, 26.08.2020 05:01 brookerebman15

Presented below is net asset information related to the Marin Division of Santana, Inc. 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 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 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 $410 million. Management has also received an offer to purchase the division for $335 million (deemed an appropriate fair value). All identifiable assets’ and liabilities’ book and fair value amounts are the same.

Required:
Prepare the journal entry to record the impairment at December 31, 2017.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 22:40

Gyou plan to deposit $1,700 per year for 5 years into a money market account with an annual return of 2%. you plan to make your first deposit one year from today. what amount will be in your account at the end of 5 years? round your answer to the nearest cent. do not round intermediate calculations. $ assume that your deposits will begin today. what amount will be in your account after 5 years? round your answer to the nearest cent. do not round intermediate calculations.

Answers: 2

Answer

Business, 22.06.2019 02:40

Aquatic marine stores company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. aquatic uses standard costs to prepare its flexible budget. for the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: direct materials: 3 pounds per unit; $ 6 per pound direct labor: 4 hours per unit; $ 19 per hour during the first quarter, aquatic produced 5 comma 000 units of this product. actual direct materials and direct labor costs were $ 65 comma 000 and $ 330 comma 000, respectively. for the purpose of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 5 comma 000 units.

Answers: 2

Answer

Business, 22.06.2019 09:50

Is exploiting a distinctive competence or improving efficiency for competitive advantage. (a) cooptation (b) coalition (c) competitive intelligence (d) competitive aggression (e) smoothing

Answers: 1

Answer

Business, 22.06.2019 17:30

According to management education expert ashok rao, companies can increase their profitability by through careful inventory management. a. 5% to 10% b. 10% to 25% c. 20% to 50% d. 75%

Answers: 1

Answer

You know the right answer?

Presented below is net asset information related to the Marin Division of Santana, Inc. Cash $64

Questions