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When answering this question, could you pls fill out the chart :) For each case presented below, determine the gain or loss to be reported
When answering this question, could you pls fill out the chart :)
For each case presented below, determine the gain or loss to be reported in each year (assume the impairment was realized at disposal; i.e. there was no additional impairment): CASE 1 2 3 4 S 6 7 8 2 (1,000) 1,000 (1,000) AMOUNTS REPORTED IN: 3 4 5 - RESULTS OF OPERATIONS -- Year 2 Year 1 Measurement date to End of year Beginning of year to disposal date 6 Reporting Gains/Losses on Discontinued Operations (extended phase-out period) $1,000 (1,000) 7 1,000 (1,000) 1,000 8 $750 (750) (750) 750 750 (750) (750) 750 IMPAIRMENT TEST 12/31/Year 1 Book Value $10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Year 1 Year 2 Case Income Impairment Report Income Gain/Loss Report 1 Fair Value Less Costs $11,250 8,750 8,750 11,250 8,750 11,250 11,250 8,750 DISPOSAL Year 2 Gain/loss on Disposal $1,250 (1,250) (1,250) 1,250 (1,250) 1,250 1,250 (1,250) Step by Step Solution
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