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At the end of its 2020 fiscal year, a triggering event caused Lucas Films to perform an impairment test for one of its studio facilities.
At the end of its 2020 fiscal year, a triggering event caused Lucas Films to perform an impairment test for one of its studio facilities. The following information is available. What amount of impairment loss should Lucas record for this facility? $55 million Book value Estimated undiscounted future cash flows Fair value 50 million 48 million $5 million No impairment loss is necessary $2 million $7 million
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