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At the end of 2025,SarasotaCompany is conducting an impairment test and needs to develop a fair value estimate for machinery used in its manufacturing operations.
At the end of 2025,SarasotaCompany is conducting an impairment test and needs to develop a fair value estimate for machinery used in its manufacturing operations. Given the nature ofSarasota's production process, the equipment is for special use. (No secondhand market values are available.) The equipment will be obsolete in2years, andSarasota's accountants have developed the following cash flow information for the equipment
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