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Examine the following hypothetical scenario: the company determined the present value of expected future cash flows for its PPE is 25% less than the carrying

Examine the following hypothetical scenario: the company determined the present value of expected future cash flows for its PPE is 25% less than the carrying value at the end of the current fiscal year. Prepare the journal entry to record this event, if necessary. How will this affect the current income statement and balance sheet?

Carrying value = 36,576,000

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