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(Solved): 4 Impairment Consider the following facts for the current period: Asset Facility 1 P ...
? ? 4 Impairment ? Consider the following facts for the current period: • Asset Facility 1 Patent A • Machine C ? Carrying Value $20,000 $7,000 $15,000 Undiscounted CF $25,000 $7,500 $12,000 Fair Value $18,000 $12,000 $11,500 • Determine the impairment loss recognized for all 3 long-lived assets . And the reported value for each asset at the end of the period.
- Consider the following facts for the current period: - Determine the impairment loss recognized for all 3 long-lived assets - And the reported value for each asset at the end of the period.
Expert Answer
Impairment of a long-lived asset is recognized when the carrying amount is not recoverable and exceeds its fair value. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected from the use and eventual disposition of the asset. The impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value.