Problem: Cobly corporation operates a manufacturing plant in wyoming due to significant decline in demand for the product manufactures at the wyoming cite, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant: Cost $32.5 million Accumulated Depreciation $14.2 Million Colby's estimate of total cash flows to be generated by selling the products manufactured at its wyoming plant, not discounted to present value $15 million. The fair value of the wyoming plant is estimated to be $11 million.
Requirements:
1. Determine the amount of impairment loss.
2. What is the reported book value of the asset in the year-end balance sheet? Recoverability Test Answer, Measurement of Impairment, Book Value as reported on balance sheet. And impairment loss is reported where on the income statement?