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N Incorporated plans to dispose a group of assets that form part a disposal group. These assets have the following data on December 31, 2021: Asset Carrying value Inventory 2 million Equipment 5 million Land 20 million Building 15 million Goodwill 3 million Total 45 million The carrying value of the inventory is equal to its net realizable value. On the date of reclassification, the fair value less cost to sell of the disposal group is 40 million.   Impairment loss to be recognized on the date of reclassification is:   a. 3,000,000 b. 2,000,000 c. 5,000,000 d. Answer not among the choices e. 0 Clear my choice

N Incorporated plans to dispose a group of assets that form part a disposal group. These assets have the following data on December 31, 2021: Asset Carrying value Inventory 2 million Equipment 5 million Land 20 million Building 15 million Goodwill 3 million Total 45 million The carrying value of the inventory is equal to its net realizable value. On the date of reclassification, the fair value less cost to sell of the disposal group is 40 million.   Impairment loss to be recognized on the date of reclassification is:   a. 3,000,000 b. 2,000,000 c. 5,000,000 d. Answer not among the choices e. 0 Clear my choice

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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N Incorporated plans to dispose a group of assets that form part a disposal group. These assets have the following data on December 31, 2021:

Asset

Carrying value

Inventory

2 million

Equipment

5 million

Land

20 million

Building

15 million

Goodwill

3 million

Total

45 million

The carrying value of the inventory is equal to its net realizable value. On the date of reclassification, the fair value less cost to sell of the disposal group is 40 million.

 

Impairment loss to be recognized on the date of reclassification is:


 

a.

3,000,000

b.

2,000,000

c.

5,000,000

d.

Answer not among the choices

e.

0

Clear my choice
 
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