uni declined due to aging faclities and competition from a rival that opened new
ID: 2560976 • Letter: U
Question
uni declined due to aging faclities and competition from a rival that opened new Original cost $9,856,000 4 years useful life Appropriate discount rate 5 percent (a) t loss, if any, that Bridgeport should report for fiscal 2016 and the book value at which Bridgeport should report the five stores on its fiscal year-end 2016 balance sheet. Assume that the cash flows occur at the end df each year. (Round present value factor calculations to 5 decimal places, e-g. 1.25124 and the final answer to 0 decimal places e.g 5,125. If no loss, enter amount as o.)Explanation / Answer
present value of cash flow = PVA 6%,10* Annual cash flow
= 7.36009 * 2,747,080
= $ 20,218,756.04
carrying value of asset :3607890-9856000=26222900
Impairment loss = 20218756.04-26222900 = $ 6,004,143.96
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