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The following information is related to an asset: Carrying Amount=$40,000 Selling Price= $50,000 Cost of removing the asset=$12,000 Estimated future cash flow=$45,000 Present value of
The following information is related to an asset: Carrying Amount=$40,000 Selling Price= $50,000 Cost of removing the asset=$12,000 Estimated future cash flow=$45,000 Present value of estimated future cash flow=$36,000 Answer the questions 14-18 based on the above information: 14. The IFRS asset's recoverable amount is equal: a $50,000 b. $36,000, c. $38,000 d. $45,000. 15, The GAAP asset's recoverable amount is equal:: a $50,000 b. $36,000. c. $38,000. d. $45,000 16. Impairment loss or gain to be recognized under IFRS related to this asset is equal: a $2,000 gain. b. $2,000 loss. c. $5,000 gain. d. $5,000 loss. 17. Impairment loss or gain to be recognized under GAAP related to this asset is equal a. $2,000 gain. b, $2,000 loss. c. $5,000 gain. d. None of the above. 18. In the case of increasing the recoverable amount in the new year. GAAP allow the reversal of the impairment loss. a true. b. false..
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