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Business, 05.07.2021 20:10 domenica19

The purpose of the Carlos 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 $438 million. Management has also received an offer to purchase the division for $351 million. All identifiable assetsâ and liabilitiesâ book and fair value amounts are the same. Required:
Prepare the journal entry to record the impairment at December 31, 2017.

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The purpose of the Carlos Division is to develop a nuclear-powered aircraft. If successful, travelin...
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