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Weselton Company had the following assets at December 31, 2014. Assume that indicators of impairment are present in all cases. Using the multiple dropdown boxes,
Weselton Company had the following assets at December 31, 2014. Assume that indicators of impairment are present in all cases. Using the multiple dropdown boxes, indicate how much impairment loss is required for each asset (if any).
Asset | Carrying Value | Expected Future Cash Flows (undiscounted) | Fair Value | Impaired? |
Building | $430,000 | $510,000 | $400,000 | Not impaired |
Trademark | 60,000 | 63,800 | 58,000 | 2,000 |
Patent | 68,000 | 40,000 | 25,500 | 42,500 |
please explain why the first one is nor impaired. thank you.
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