Question
Max Inc. purchased on January 2, 2017, equipment with a cost of $10,440,000, a useful life of 10 years and no salvage value. The Company
Max Inc. purchased on January 2, 2017, equipment with a cost of $10,440,000, a useful life of 10 years and no salvage value. The Company uses straight-line depreciation. At December 31, 2017 and December 31, 2018, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end:
12/31/201712/31/2018
Fair value less cost to sell$9,315,000$8,350,000
Value-in-use$9,350,000$8,315,000
There is no change in the asset's useful life or salvage value. The2018income statement will report (impairment loss or recovery of impairment loss)___________ of $_____________
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