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Crane Company has equipment with a carrying amount of $2400000. The expected future net cash flows from the equipment are $2440000, and its fair value

Crane Company has equipment with a carrying amount of $2400000. The expected future net cash flows from the equipment are $2440000, and its fair value is $2035000. The equipment is expected to be used in operations in the future. What amount (if any) should Crane report as an impairment to its equipment?

$40000.

No impairment should be reported.

$405000.

$365000.

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