Identifying and Recording Impairment Loss on Plant Asset

Three cases are provided below concerning a plant asset currently used in operations.

Case	Carrying Value	Recoverable Cost	Fair Value
A	$64,000	$96,000	$72,000
B	72,000	104,000	64,000
C	96,000	64,000	48,000

Required

a. Which case(s), if any, requires an impairment loss to be recognized, and for what amount? Assume that indicators of impairment are present in all cases. Note: If the asset is not impaired, enter a zero (or leave blank) for the loss. Note:Do not use negative signs with your answers.

	Impairment Loss
Case A	Answer
Case B	Answer
Case C	Answer

b. Record the entry for the impairment loss on the case(s) identified in part a (if any). Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).

Account Name	Dr.	Cr.
	Answer	Answer
AnswerCashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings--Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reveral of Impairment LossLoss on ImpairmentLoss on DisposalN/A	Answer	Answer

Please answer all parts of the question. Options are CashInventoryPropertyBuildingEquipmentAccumulated DepreciationCost of Oil ReserveRetained Earnings--Prior Period AdjustmentSalesCost of Goods SoldDepreciation ExpenseExploration ExpenseRepairs ExpenseGain on Reveral of Impairment LossLoss on ImpairmentLoss on DisposalN/A