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The Codid Company has acquired a piece of equipment on January 1, 2017. On December 31, 2020, it decided to test it for impairment and
- The Codid Company has acquired a piece of equipment on January 1, 2017. On December 31, 2020, it decided to test it for impairment and provided you with the following information:
Equipment original cost | $340,000 |
Annual depreciation | 30,000 |
Fair value | 200,000 |
Costs to sell | 2,000 |
Discounted future cash flows generated by the equipment | 197,000 |
Undiscounted future cash flows generated by the equipment | 205,000 |
Assuming Codid is a public company, determine the amount of impairment to be recorded on December 31, 2020, if any.
- $22,000
- $23,000
- $52,000
- $53,000
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