On 12/31/2017, a 3-year useful life building was purchased as part of a lump sum...
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On 12/31/2017, a 3-year useful life building was purchased as part of a lump sum purchase along with a parcel of land for a total of 70. The land was worth 50 on its own and the building was worth 40 on its own. On 12/31/2018, circumstances indicate the building should be tested for impairment. Given the information about expected future cash flows below, what is the amount of impairment, if any:
Discounted Cash Flows:
2019: 10
2020: 10
Total: 20
Undiscounted Cash Flows
2019: 15
2020: 15
Total: 30
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