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Acquisition cost, accumulated amortization, estimated undiscounted future cash flows (FCF) and present value of FCF of a patent are $7M, $2M, $6M and $4M, respectively.
Acquisition cost, accumulated amortization, estimated undiscounted future cash flows (FCF) and present value of FCF of a patent are $7M, $2M, $6M and $4M, respectively. Patent is: impaired because its book value exceeds fair value (i.e., present value of future cash flows) impaired because its book value exceeds undiscounted future cash flows not impaired because its acquisition cost exceeds undiscounted future cash flows not impaired because undiscounted future cash flows exceed its book value 
Acquisition cost, accumulated amortization, estimated undiscounted future cash flows (FCF) and present value of FCF of a patent are $7M,$2M,$6M and $4M, respectively. Patent is: impaired because its book value exceeds fair value (i.e., present value of future cash flows) impaired because its book value exceeds undiscounted future cash flows not impaired because undiscounted future cash flows exceed its book val Step by Step Solution
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FINANCIAL ACCOUNTING AND COSTING
Authors: Meera Gopi Krishna
1st Edition
979-8604687369
