An impairment model is used To calculate the fair value of intangible assets. To assess whether asset write-downs are appropriate for indefinite-lived assets. To determine the likelihood that the fair value of an assumed liability will increase. To determine whether the fair value of assets should be recognized. To calculate the amortization of indefinite-lived assets over their useful lives.

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?