Sanders Corporation operates a factory in Arizona. Due to a change in business climate, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant:

Required:
1. Determine the amount of impairment loss, if any.
2. If a loss is indicated, prepare the entry to record the loss
3. Repeat requirement 1 assuming that Sanders prepares its financial statements according to International Financial Reporting Standards (IFRS). Also assume that the estimated fair value of the factory approximates fair value less costs to sell.

Question

Sanders Corporation operates a factory in Arizona. Due to a change in business climate, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant:

Required:
1.	Determine the amount of impairment loss, if any. 
2.	If a loss is indicated, prepare the entry to record the loss
3.	Repeat requirement 1 assuming that Sanders prepares its financial statements according to International Financial Reporting Standards (IFRS). Also assume that the estimated fair value of the factory approximates fair value less costs to sell.

Quizplus · Accepted Answer

The Answer of Sanders Corporation operates a factory in Arizona. Due to a change in business climate, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant:

Required:
1.	Determine the amount of impairment loss, if any. 
2.	If a loss is indicated, prepare the entry to record the loss
3.	Repeat requirement 1 assuming that Sanders prepares its financial statements according to International Financial Reporting Standards (IFRS). Also assume that the estimated fair value of the factory approximates fair value less costs to sell.

Sanders Corporation Operates a Factory in Arizona