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Darwin Manufacturing just determined that a particular patent has a carrying amount of $2 million and is expected to generate $2.2 million in future net

Darwin Manufacturing just determined that a particular patent has a carrying amount of $2 million and is expected to generate $2.2 million in future net cash flows. Based on this information, Darwin should

record a $200,000 impairment loss.

write off the full carrying amount of the patent.

proceed to a recoverability test.

assume there is no impairment on the patent.

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