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Wilson Inc. owns equipment for which it paid $70 million. At the end of 2018, it had accumulated depreciation on the equipment of $12 million.

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Wilson Inc. owns equipment for which it paid $70 million. At the end of 2018, it had accumulated depreciation on the equipment of $12 million. Due to adverse economic conditions, Wilson's management determined that it should assess whether an impairment loss should be recognized for the equipment. The estimated undiscounted future cash flows to be provided by the equipment total $60 million, and he equipment's fair value at that point is $50 million. Under these circumstances, Wilson: None of these answer choices are correct o Would record an $8 million impairment loss on the equipment Would record no impairment loss on the equipment Would record a $20 million impairment loss on the equipment

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