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4 May, 03:34

Vaughn Manufacturing has equipment with a carrying amount of $2490000. The expected future net cash flows from the equipment are $2530000, and its fair value is $2040000. The equipment is expected to be used in operations in the future. What amount (if any) should Vaughn report as an impairment to its equipment?

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  1. 4 May, 05:41
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    No impairment should be recorded

    Explanation:

    $2,530,000>$2,490,000 No impairment because the expected future net cash flows from the equipment is greater than the carrying amount.

    Therefore Vaughn will record or report no impairment
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