Question
The carrying amount of contract costs relating to a performance obligation and recognized as an asset is $144,000. Further costs required in order to satisfy
The carrying amount of contract costs relating to a performance obligation and recognized as an asset is $144,000. Further costs required in order to satisfy the obligation are estimated to be $36,000. The consideration receivable by the company when the obligation is satisfied is $158,400.
Calculate the amount of the impairment loss (if any) which should be deducted from the contract asset and recognized as an expense.
36,000
$21,600
$50,400
$0
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Step 1 Impairment loss is loss to be recognized due to the which are abo...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
8th Edition
1285190904, 978-1305176348, 1305176340, 978-1285190907
