The carrying amount of contract costs relating to a performance obligation and recognized as an asset is

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The carrying amount of contract costs relating to a performance obligation and recognized as an asset is $144,000. Further costs required in order to satisfy the obligation are estimated to be $36,000. The consideration receivable by the company when the obligation is satisfied is $158,400.

Calculate the amount of the impairment loss (if any) which should be deducted from the contract asset and recognized as an expense.

36,000
$21,600
$50,400
$0

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1285190907

8th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: May 24, 2022 07:51 AM

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The carrying amount of contract costs relating to a performance obligation and recognized as an asset is

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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