Northwest Catering owns and operates several restaurant services in Oregon,Washington,and Idaho.One restaurant chain has experienced sharply declining profits.The company's management has decided to test the operational assets of the restaurants for possible impairment.The relevant information for these assets is presented below:
Determine the amount of the impairment loss,if any.
$\begin{array}{lr}
\text { Book value } & \$ 4.5 \text { million } \
\text { Estimated total future cash flows } & 5.0 \text { million } \
\text { Fair value } & 3.5 \text { million }
\end{array}$

Question

Northwest Catering owns and operates several restaurant services in Oregon,Washington,and Idaho.One restaurant chain has experienced sharply declining profits.The company's management has decided to test the operational assets of the restaurants for possible impairment.The relevant information for these assets is presented below:
Determine the amount of the impairment loss,if any.
 $\begin{array}{lr}
\text { Book value } & \$ 4.5 \text { million } \
\text { Estimated total future cash flows } & 5.0 \text { million } \
\text { Fair value } & 3.5 \text { million }
\end{array}$

Quizplus · Accepted Answer

The Answer of Northwest Catering owns and operates several restaurant services in Oregon,Washington,and Idaho.One restaurant chain has experienced sharply declining profits.The company's management has decided to test the operational assets of the restaurants for possible impairment.The relevant information for these assets is presented below:
Determine the amount of the impairment loss,if any.
 $\begin{array}{lr}
\text { Book value } & \$ 4.5 \text { million } \
\text { Estimated total future cash flows } & 5.0 \text { million } \
\text { Fair value } & 3.5 \text { million }
\end{array}$

Northwest Catering Owns and Operates Several Restaurant Services in Oregon,Washington,and