ss At the beginning of 2022, Metatec Incorporated acquired Ellison Technology Corporation for $630 million. In addition to cash,receivables, and inventory, the following assets and their fair values were also acquired:Plant and equipment (depreciable assets)PatentGoodwillThe plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. Thepatent is estimated to have a five-year useful life, no residual value, and is amortized using the straight-line method.$ 153 million43 million100 millionAt the end of 2024, 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 sun of future cash flowsFair valuePatent:Undiscounted sum of future cash flowsFair valueGoodwill:Fair value of Ellison Technology CorporationBook value of Ellison's net assets (excluding goodwill)Book value of Ellison's net assets (including goodwill)$83 million63 million$ 20 million13 million$ 483 million420 million500 millionsAfter first recording any impairment losses on plant and equipment and the patent.Required:1. Compute the book value of the plant and equipment and patent at the end of 2024.2. When should the plant and equipment and the patent be tested for impairment?3. When should goodwill be tested for impairment?4. Determine the amount of any impairment loss to be recorded, if any, for the three assets.Complete this question by entering your ansviers in the tabs below. 1. Compute the book value of the plant and equipment and patent at the end of 2024.2. When should the plant and equipment and the patent be tested for impairment?3. When should goodwill be tested for impairment?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 2 Required 3Required 4Determine the amount of any impairment loss to be recorded, if any, for the three assets.Note: Enter your answers in millions rounded to 1 decimal place. For example, $5,500,000 should be entered as $5.5.Plant and equipmentPatentGoodwill$Impairment Lossmillion0.0 millionmillion

Name: ss At the beginning of 2022, Metatec Incorporated acquired Ellison Tec
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: ss At the beginning of 2022, Metatec Incorporated acquired Ellison Technology Corporation for $630 million. In addition to cash,receivables, and inventory, the following assets and their fair values were also acquired:Plant and equipment (depreciable