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Fair Value Cost to Residual Value At December 31, Year 5, Aaron Co. had the following property, plant, and equipment: Present Value Sum of All
Fair Value Cost to Residual Value At December 31, Year 5, Aaron Co. had the following property, plant, and equipment: Present Value Sum of All Useful Life from of All Cash Undiscounted the Acquisition Asset Flows Cash Flows Sell Date (Depreciation Expected from Expected from Method) the Asset the Asset Equipment $220,000 $5,000 $230,000 $255,000 6 years (Straight Line) Machine set 310,000 8,000 320,000 335,000 4 years (SYD) Land 660,000 9,000 600,000 640,000 $0 0 Determine the impairment losses recognized for Year 5 under U.S. GAAP and IFRS. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive numbers. If the correct answer is zero, enter a zero (0). Asset Impairment Loss Under U.S. GAAP Impairment Loss Under IFRS 1. Equipment 2. Machine set 3. Land Purchase Receipt 1 - Equipment Purchase Date: 7/1/Year 2 Purchase Amount: $600,000 Purchase Receipt 2 - Machine Set Purchase Date: 1/1/Year 5 Purchase Amount: $600,000 Purchase Receipt 3 - Land Purchase Date: 1/1/Year 3 Purchase Amount: $650,000
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