Evaluate asset impairment. (LO 4) During its fiscal year ended June 30, Super Shippers Delivery Service had
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Evaluate asset impairment. (LO 4)
During its fiscal year ended June 30, Super Shippers Delivery Service had to decommission 1,500 delivery trucks due to a potential problem with the fuel tank. Although the trucks had been repaired by the end of the fiscal year, the company determined the problems required an evaluation of potential impairment of these trucks. The results of the analysis indicated that the trucks had permanently declined in fair value by \(\$ 7.5\) million below their book value. What effect would this decline have on Super Shippers' net income for the year?
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