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A company owns a piece of equipment with a net cost of $30,000 (cost of $50,000 net of accumulated depreciation of $20,000). There are indicators that this equipment is impaired. The expected net future undiscounted cash flows are $31,000. The expected net future discounted cash flows are $28,000. The fair value of the equipment is $25,000 and selling costs are minimal.

A. What is the impairment loss for the company using US GAAP? Provide the journal entry to record the impairment loss, if any.

B. What is the impairment loss using IFRS? Provide the journal entry to record the impairment loss, if any.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91524522

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