Asset Impairment Consider the following three independent scenarios:

1. For each of the three scenarios, answer the following questions:

a. Is the asset impaired?

b. At what amount (net of accumulated depreciation) should the asset be reported?
2. Make the journal entry required in Scenario 3.

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Original cost of asset Accumulated depreciation Sum of future cash flows Fair value of the asset.. 1 2 3 $1,400 $1,400 $1,400 400 400 400 1,500 1,500 900 1,100 800 800