During December 2020, Alizza Corporation determined that there had been a significant decrease in market value...
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During December 2020, Alizza Corporation determined that there had been a significant decrease in market value of an equipment used in the manufacturing process. On December 31, 2020, the entity compiled the following information: Original cost of equipment Accumulated depreciation 5,000,000 3,000,000 Expected undiscounted net future cash inflows related to the continued use and eventual disposal of the equipment 1,750,000 Fair value of equipment 1,250,000 19. What is the amount of impairment loss that should be reported in the income statement for the year ended December 31, 2020? During December 2020, Alizza Corporation determined that there had been a significant decrease in market value of an equipment used in the manufacturing process. On December 31, 2020, the entity compiled the following information: Original cost of equipment Accumulated depreciation 5,000,000 3,000,000 Expected undiscounted net future cash inflows related to the continued use and eventual disposal of the equipment 1,750,000 Fair value of equipment 1,250,000 19. What is the amount of impairment loss that should be reported in the income statement for the year ended December 31, 2020?
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Calculate the amount of impairment loss Carrying Amount Original cost of equipm... View the full answer
Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
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