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Reset all of the assumptions to the original values. Then assess the sensitivity of the impairment test results by changing the following assumptions listed below.
Reset all of the assumptions to the original values.
Then assess the sensitivity of the impairment test results by changing the following assumptions listed below.
Assumption Name: | Revised Assumption: |
Rate inflation | 5% |
Fixed labor cost | 1,300,000 |
Other inflation costs | 4% |
Marginal tax rate | 25% |
Finally use the asset impairment test to determine if the asset is impaired.
What is the required write down based on the revised assumptions using this scenario (answer using a positive number with no decimals)? If a write down is not required, answer 0.
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