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An entity needs to determine whether equipment held and used in operations is impaired. The equipment has the following attributes: Sum of undiscounted cash flows

An entity needs to determine whether equipment held and used in operations is impaired. The equipment has the following attributes:

  • Sum of undiscounted cash flows from use and eventual disposal: $100,000
  • Carrying value: $120,000
  • Fair value: $70,000

The impairment loss is:

a. $20,000

b. $0

c. $50,000

d. $30,000

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