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.

Solution :

Calculate the amount of loss on impairment as follows :

Particular                                                                          Millions($)

Fair value of the division                                                      351

Less: carrying amount, net of good (474 - 210)                 264

Implied goodwill                                                                     78

Less: carrying value of good will                                         210

Loss on impairment                                                              132

Record impairment loss

Account title                                            Debit($ million)           Credit ($ million)

Loss of impairment                                        132

Goodwill                                                                                         132

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!

answerblank(1) starts; blank(2); // cash cows;