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A company purchased a piece of equipment for $30,000 on January 1, 2019. Management estimates salvage value of $3,000 and a useful life of five
- A company purchased a piece of equipment for $30,000 on January 1, 2019. Management estimates salvage value of $3,000 and a useful life of five years. It uses the straightline method of depreciation. Where applicable, it applies the halfyear rule. On December 31, 2021 the equipments fair value is estimated to be $3,000. What is the impairment loss for 2021?
a. $3,000
- $5,400
- $7,800
- $10,800
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