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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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