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Question 2 Impairment Reversal Arnold Ziffel Incorporated (AZI) owns a rhubarb candy factory in Tajikistan. The factory was purchased on 1^ July 2013 for $15,000,000.

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Question 2 Impairment Reversal Arnold Ziffel Incorporated (AZI) owns a rhubarb candy factory in Tajikistan. The factory was purchased on 1^ July 2013 for $15,000,000. At that time, the factory was expected to have a useful life of 30 years with a $0 residual value. Three years ago, it became very difficult to get the candy to market in Kashgar, because ofrebel activity in Goro-Badakshan. Consequently, on 30* June 2016 the factory was impairment tested, the recoverable amount was calculated to be $8, 100,000, and an impairment was recognised. There was no change in the expected life or residual value. In mid-April of 2019, the Tajik government negotiated a peace deal returning peace to Gorno-Badakshan. Consequently, on 30* June 2019 it was determined that the recoverable amount of the factory was now $22,000,000. There was no change in the expected life or residual value

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