Do not give answer in image At the beginning of 2019, Metatec Inc. acquired Ellison Technology Corporation for $530 million. In addition to cash, receivables, andinventory, the following assets and their fair values were also acquired:Plant and equipment (depreciable assets)PatentGoodwillThe plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. Thepatent is estimated to have a 5-year useful life, no residual value, and is amortized using the straight-line method.$143 million33 million120 millionAt the end of 2021, a change in business climate indicated to management that the assets of Ellison might be impaired. The followingamounts have been determined:Plant and equipment:Undiscounted sum of future cash flowsFair valuePatent:Undiscounted sum of future cash flows.Fair value$73 million53 million$ 19 million12 millionGoodwill:Fair value of Ellison Technology CorporationFair value of Ellison's net assets (excluding goodwill)Book value of Ellison's net assets (including goodwill)After first recording any impairment losses on plant and equipment and the patent.$373 million320 million400 million* 4. Determine the amount of any impairment loss to be recorded, if any, for the three assets.Complete this question by entering your answers in the tabs below.Required 1 Required 4Determine the amount of any impairment loss to be recorded, if any, for the three assets. (Enter your answers in millions.Round your final answers to nearest whole dollar.)Plant and equipmentPatentGoodwillImpairment Loss$ 47 million$0 millionmillion

The impairment loss is the difference between the asset's future unreported cash flow and its drop…

Answered: Determine the amount of any impairment…

Business

Accounting

Determine the amount of any impairment loss to be recorded, if any, for the three assets.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 75P

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