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Alfredo's Pizza Cafe acquires an oven on January 1 of Year 1 for $10,000. Alfredo's capitalizes this asset and depreciates it using the straight-line method
Alfredo's Pizza Cafe acquires an oven on January 1 of Year 1 for $10,000. Alfredo's capitalizes this asset and depreciates it using the straight-line method with a 10-year useful life and salvage value of $2,000. On January 1 of year 4, the company learns that the asset's fair market value is $6,000. How much should the company record as an impairment loss? (Enter your answer as a positive number in the amount of the impairment loss.)
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