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CBRE Group Data for the year ended December 31, 2023: Item Amount Long-term Investment Cost $5,000,000 Market Value of Investment $4,200,000 Sales $15,000,000 Cost of

CBRE Group Data for the year ended December 31, 2023:

Item

Amount

Long-term Investment Cost

$5,000,000

Market Value of Investment

$4,200,000

Sales

$15,000,000

Cost of Goods Sold

$9,000,000

Operating Expenses

$3,000,000

  1. Calculate the impairment loss on the investment.
  2. Determine the impact on net income due to the impairment loss.
  3. Discuss how recognizing the impairment loss affects CBRE’s financial health.
  4. Explain the application of the Conservatism Principle in recognizing impairment losses.
  5. How should the company record the impairment loss in its journal entries?

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