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Current Attempt in Progress Presented below is net asset information related to the Marin Division of Santana, Inc. Cash Marin Division Net Assets As of December 31, 2025 (in millions) Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets (a) -w Transcribed Text $64 213 2,608 The purpose of the Marin 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 $430 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. Account Titles and Explanation 214 (2,603) $496 Prepare the journal entry to record the impairment at December 31, 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) Debit Credit

Current Attempt in Progress Presented below is net asset information related to the Marin Division of Santana, Inc. Cash Marin Division Net Assets As of December 31, 2025 (in millions) Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets (a) -w Transcribed Text $64 213 2,608 The purpose of the Marin 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 $430 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. Account Titles and Explanation 214 (2,603) $496 Prepare the journal entry to record the impairment at December 31, 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) Debit Credit

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....
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Current Attempt in Progress Presented below is net asset information related to the Marin Division of Santana, Inc. Cash Marin Division Net Assets As of December 31, 2025 (in millions) Accounts receivable (a) Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets ow Transcribed Text $64 213 Account Titles and Explanation 2,608 The purpose of the Marin 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 $430 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. 214 (2,603) $496 C Prepare the journal entry to record the impairment at December 31, 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) Debit Credit
Transcribed Image Text:Current Attempt in Progress Presented below is net asset information related to the Marin Division of Santana, Inc. Cash Marin Division Net Assets As of December 31, 2025 (in millions) Accounts receivable (a) Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets ow Transcribed Text $64 213 Account Titles and Explanation 2,608 The purpose of the Marin 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 $430 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. 214 (2,603) $496 C Prepare the journal entry to record the impairment at December 31, 2025. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry) Debit Credit
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