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Can you please help me understand this question ABC Company was preparing the annual financial statements and, as part of its year-end procedures, prepared the

Can you please help me understand this question

ABC Company was preparing the annual financial statements and, as part of its year-end procedures, prepared the following schedule based on adjusted values at March 31, 2020:

Asset Cost Accumulated Depreciation Recoverable Amount Residual Value Depreciation Method Remaining Life
Furniture $25,000 $20,000 $10,000 $500 Straight Line 3 years
Computer $2,000 $1,000 $500 - Double Declining 5 yeas
Land $105,000 - $90,000 N/A N/A Unlimited
Machine $90,000 $25,000 $35,000 $5,000 Straight Line 3 years
N/A = Not applicable
Required
1. Record the entry for any impairment loss assuming that ABC Company recorded no impairment losses in previous years.
2. Record the entry for depreciation on each of the assets at March 31, 2020. Assume there was no change in residual or useful lives regardless of impairment losses.

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