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Equipment cost $ 50,000 Accumulated depreciation 20,000 Annual future cash flows 5,000 Remaining life 10 Discount rate 10% 1. Recoverability test Net book value of
| Equipment cost | $ 50,000 | |
| Accumulated depreciation | 20,000 | |
| Annual future cash flows | 5,000 | |
| Remaining life | 10 | |
| Discount rate | 10% | |
| 1. Recoverability test | ||
| Net book value of equipment | ||
| Sum of future cash flows | ||
| Is there an imapairment? | ||
| 2. If there is an impairment calculate the amount | ||
| Net book value of equipment | ||
| PV of future cash flows | ||
| Amount of the impairment | ||
| Journal Entry: | ||
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