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Assume a companys equipment carries a book value of $24,000 ($24,750 cost less $750 accumulated depreciation) and a fair value of $22,125, and that the

Assume a companys equipment carries a book value of $24,000 ($24,750 cost less $750 accumulated depreciation) and a fair value of $22,125, and that the $1,875 decline in fair value in comparison to the book value meets the two-step impairment test.

Prepare the entry to record this $1,875 impairment.

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