This problem requires you to research the disclosure requirements for fixed assets using the FASB Codification at www.fasb.org. Access to the FASB Codification requires that your educational institution be enrolled in the FASB academic access program, or provides access to the codification through a third-party provider.
a. Identify the section in the FASB Codification that addresses property, plant, and equipment, and the subsection that provides disclosure requirements.
b. Indicate the disclosures for fixed assets that should be made in the financial statements or footnotes to the statements.
c. The section on disclosure also includes requirements for impairment or disposal of long-lived assets. What is the definition of impairment?
d. Identify the information that must be disclosed in the notes to the financial statements for the period in which an impairment loss is recognized.

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Vernal Manufacturing Co. Income Statement Accounts 2/31/16 Per G/L Per G/L Change Account 2/31/16 Amount Percent Explanations by Clie Sales Sales returns and allowances Gain on salle of assets $8.467,312 (64.895) 43.222 243 $9,845,.231 1,377,919 16.3 (243.561) (178.666) 2753 (143.200 (186.422)43.3 Sales increase due to two new customers who account for 20% of volume. Larger returns due to need to cement relations with these Interest income Miscellaneous income (20) 8.2 customers 9.113 300.3 Trade-in of several sales cars that needed replacement. Cost of goods sold: ,487,666 2,564.45 45,332 1.389,034 3,430,865 6.6 866414 33.8 Increase in chese accounts due to increased volume 20,450 45.1 with new customers as indicated above. 8,667-24.5 58712 6.1 Purchase returns Factory wages (57,643) 1,145.467 986,755 197,652 Factory depreciation Ending inventory 490,765 314,553 .389,034) (2156,003) 2.106 (29,559 8.6 (766.969 55.2 Inventory being held for new customers 4,639,283 824,163 Selling, general, and administrative 7,103 4.2 Normal salary increases 2,167 6.7 2,865 Executive benefits Office salaries Office benefits Travel and entertainment Advertising Other sales expense Stationery and supplies Postage 32,321 19,888 56,845 130,878 21,778 75,583 156,680 42,334 3.0 9.5 33.0 19.7 18,738 25.802 Sales and promotional expenses increased in ап attempt to obtain new major customers. 7.454 2.4 Two obeained and program will continue 38.221 4.657 36,551 3.644 5,607 14,154 16,700 73.450 166.454 44,321 20,432 21,554 6,667) 43.6 Probably a misclassification; will investigate. 8,756 4,099 28.0 Normal increase. 31,27 85.6 Normal increase 67,822 878 24.1 Normal increase Dues and memberships Rent 5,607 35.460 18.650 69.500 43.871 21,306 50.5 Timing of billing for fees. 1,950 117 Normal increase (3,950) -54 Normal change. Depreciation, SG&A Bad debt expense (22583) 36 Haven't reviewed yet for the current year. 1,38 3. Normal change 17.490 145 Normal change. 3 307 427.3 Amount not material Other expense 28,762 6,036,256 ,020,600 1,087,592 24,501I 309.38 Income before taxes Income taxes 93,974 S1.798.746 $2427,315S 628,569 2,725,372 3,447915 722 543 265 10.I 34.9 926,626 Increase due to increased income before tax.