• Vicent Company acquired a depreciable asset at the beginning of 2018 at a cost of $20 million. At December 31,2018, Madison gathered the following information related to this asset:

Carrying amount (net of accumulated depreciation) ………………………. $18 million

Fair value of the asset (net selling price) …………………………………………. $ 17.5 million

Sum of future cash flows from use of the asset…………………………………$ 20 million

Present value of future cash flows from use of the asset…………………. $ 18 million

Remaining useful life of the asset……………………………………………………… 9 years

            Required: Write down the journal entry at the end of 2018

• Follow IFRS
• Follow U.S GAAP

Answer rating: 100% (QA)

Under IFRS 36 impairment is recognized when carrying value of an asset is less than the greater of ... View the full answer