Sunland Enterprises, Inc. operates several stores throughout thewestern United States. As part of an...

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Sunland Enterprises, Inc. operates several stores throughout thewestern United States. As part of an operational and financialreporting review in a response to a downturn in its markets, thecompany’s management has decided to perform an impairment test onfive stores (combined). The five stores’ sales have declined due toaging facilities and competition from a rival that opened newstores in the same markets. Management has developed the followinginformation concerning the five stores as of the end of fiscal2019.
Original cost $37,830,000
Accumulated depreciation $9,490,000
Estimated remaining useful life 4 years
Estimated expected future annual cash flows (notdiscounted) $4,060,000 per year
Appropriate discount rate 4 percent
Determine the amount of impairment loss, assume that (1) theestimated remaining useful life is 10 years, (2) the estimatedannual cash flows are $2,947,320 per year, and (3) the appropriatediscount rate is 5 percent. ***(Round present value factorcalculations to 5 decimal places, e.g. 1.25124 and the final answerto 0 decimal places e.g. 5,125.* *If no loss, enter amountas 0.)***
Amount of impairment loss $

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In: AccountingSunland Enterprises, Inc. operates several stores throughout thewestern United States. As part of an operational...Sunland Enterprises, Inc. operates several stores throughout thewestern United States. As part of an operational and financialreporting review in a response to a downturn in its markets, thecompany’s management has decided to perform an impairment test onfive stores (combined). The five stores’ sales have declined due toaging facilities and competition from a rival that opened newstores in the same markets. Management has developed the followinginformation concerning the five stores as of the end of fiscal2019.Original cost$37,830,000Accumulated depreciation$9,490,000Estimated remaining useful life4 yearsEstimated expected future annual cash flows (notdiscounted)$4,060,000 per yearAppropriate discount rate4 percentDetermine the amount of impairment loss, assume that (1) theestimated remaining useful life is 10 years, (2) the estimatedannual cash flows are $2,947,320 per year, and (3) the appropriatediscount rate is 5 percent. (Round present value factorcalculations to 5 decimal places, e.g. 1.25124 and the final answerto 0 decimal places e.g. 5,125. If no loss, enter amountas 0.)Amount of impairment loss$

Original cost		$37,830,000
Accumulated depreciation		$9,490,000
Estimated remaining useful life		4 years
Estimated expected future annual cash flows (notdiscounted)		$4,060,000 per year
Appropriate discount rate		4 percent