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A real estate company, CBRE Group, has the following information for the year ended December 31, 2023: Long-term investment cost: $5,000,000 Market value of investment:
A real estate company, CBRE Group, has the following information for the year ended December 31, 2023:
- Long-term investment cost: $5,000,000
- Market value of investment: $4,200,000
- Sales: $15,000,000
- Cost of Goods Sold: $9,000,000
- Operating Expenses: $3,000,000
- Calculate the impairment loss on the investment.
- Determine the impact on net income due to the impairment loss.
- How would the financial statements be affected if the investment was not written down?
- Discuss the application of the Conservatism Principle in recognizing impairment losses.
- How should the company record the impairment loss?
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