Three cases are provided below concerning a plant asset currently used in operations. Case Carrying Value Recoverable
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Question:
Three cases are provided below concerning a plant asset currently used in operations.
Case | Carrying Value | Recoverable Cost | Fair Value |
---|---|---|---|
A | $72,000 | $108,000 | $81,000 |
B | 81,000 | 117,000 | 72,000 |
C | 108,000 | 72,000 | 54,000 |
Required
a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases.
b. Record the entry for the impairment loss on the case(s) identified in part a (if any).
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