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n Year 1, Manny Company purchased a piece of equipment with a cost of 83000 and a useful life of 5 years. At the beginning

n Year 1, Manny Company purchased a piece of equipment with a cost of 83000 and a useful life of 5 years.

At the beginning of Year 3, the company has determined the following:

Expected future cash flows $49000
PV of expected future cash flows $44000
Net selling price $45000
  1. Assuming the company used straight-line depreciation and the residual value is 0, what is the depreciation in Years 1 and 2 for US GAAP and IFRS?
  2. What is the net carrying amount at the beginning of Year 3 for US GAAP and IFRS?
  3. What is the impairment, if any, for US GAAP and IFRS as of the beginning of Year 3?

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