Staffordshire is a manufacturer of Tung oil, spar varnish, resins, and fine urethanes for marine application. Accountants have determined that the recoverable amount of their urethane CGU is $14.00 million. The carrying amount of the goodwill allocated to the CGU is $1.00 million, and the carrying amount of the CGU's proprietary formula patents is $1.00 million. The urethane CGU also has mixing drums, storage tanks, and boilers with a carrying value of $10 million. Accounts receivable are carried at $2 million. Inventory is carried at $2 million. What is the impairment loss allocated to the formula patents (assuming that the only assets that the urethane CGU has are the ones listed)?

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The Answer of Staffordshire is a manufacturer of Tung oil, spar varnish, resins, and fine urethanes for marine application. Accountants have determined that the recoverable amount of their urethane CGU is $14.00 million. The carrying amount of the goodwill allocated to the CGU is $1.00 million, and the carrying amount of the CGU's proprietary formula patents is $1.00 million. The urethane CGU also has mixing drums, storage tanks, and boilers with a carrying value of $10 million. Accounts receivable are carried at $2 million. Inventory is carried at $2 million. What is the impairment loss allocated to the formula patents (assuming that the only assets that the urethane CGU has are the ones listed)?

Staffordshire Is a Manufacturer of Tung Oil, Spar Varnish, Resins