Question: Wahlberg Corp. acquires a tangible asset for $1 million on January 1, 2020. After two years of service, the asset has $300,000 of accumulated depreciation.

Wahlberg Corp. acquires a tangible asset for $1 million on January 1, 2020. After two years of service, the asset has $300,000 of accumulated depreciation. Wahlberg Corp. estimates that the fair value of the asset after two years is $650,000.

Should Wahlberg Corp. recognize an impairment for this asset?

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