Question
Wahlberg Corp. acquires a tangible asset for $1 million on January 1, 2020. After two years of service, the asset has $300,000 of accumulated depreciation.
Wahlberg Corp. acquires a tangible asset for $1 million on January 1, 2020. After two years of service, the asset has $300,000 of accumulated depreciation. Wahlberg Corp. estimates that the fair value of the asset after two years is $650,000.
Should Wahlberg Corp. recognize an impairment for this asset?
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
