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M9-8 (Algo) Recording Asset Impairment Losses [LO 9-4, LO 9-5] After recording depreciation for the current year, Media Mania Incorporated decided to discontinue using its
M9-8 (Algo) Recording Asset Impairment Losses [LO 9-4, LO 9-5]
After recording depreciation for the current year, Media Mania Incorporated decided to discontinue using its printing equipment. The equipment had cost $752,000, accumulated depreciation was $554,000, and its fair value (based on estimated future cash flows from selling the equipment) was $52,000.
Required:
- Determine whether the equipment is impaired.
- Prepare the journal entries to record the impairment in asset if any.
The fair value is_____and the book value is_____therefore this asset_____Impaired.
2.a Record the entry remove accumulated depreciation.
2. Record the impairment loss
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