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In January 2012 Winn Corp. purchased equipment at a cost of $500,000 The equipment had an estimated salvage value of $100.000, an estimated 8-year useful
In January 2012 Winn Corp. purchased equipment at a cost of $500,000 The equipment had an estimated salvage value of $100.000, an estimated 8-year useful life, and was being depreciated by the straight-line method. Two years later it became apparent to Winn that this equipment suffered a permanent impairment of value In January 2014. management of Winn Corp. determines the expected future net cash flows (undiscounted) from the use of the equipment and its eventual disposal to be $250,000 and a fair value of $225,000. Amount of an impairment loss for the equipment: $100.000 $175,000 $350,000 O $150,000
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