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Q2. a. Explain impairment of long-lived tangible. b. The accountant of X. Ltd conducted an impairment test on a machinery. The carrying amount of
Q2. a. Explain impairment of long-lived tangible. b. The accountant of X. Ltd conducted an impairment test on a machinery. The carrying amount of machinery was SAR 195,000, its fair value less costs to sell is SAR 170,000, and its value-in- use is SAR 165,000. Is there impairment or no impairment on machinery? If impairment exists what would be the journal entry. (2 Mark) Answer:
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Managerial Accounting
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
3rd edition
77826485, 978-0077722074, 77722078, 978-0077826482
