Can ABC Co. record a recovery of previous loss for 2021? Explain. to be recovered, if any Amount $__

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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International Accounting
MMM Co. reported an
impairment loss of $160,000 for
the year ended December 31,
2021. At December 31, 2022, the
asset's recoverable amount
increased by $90,000. The current
book value is $100,000 less than it
would have been if the asset had
not been impaired. The
recoverable amount do not
exceed the original book value as
if the asset was not impaired.
Required: Answer the following
question.
Can ABC Co. record a recovery of
previous loss for 2021? Explain.
Amount to be recovered, if any
$_____
Computations:
Transcribed Image Text:International Accounting MMM Co. reported an impairment loss of $160,000 for the year ended December 31, 2021. At December 31, 2022, the asset's recoverable amount increased by $90,000. The current book value is $100,000 less than it would have been if the asset had not been impaired. The recoverable amount do not exceed the original book value as if the asset was not impaired. Required: Answer the following question. Can ABC Co. record a recovery of previous loss for 2021? Explain. Amount to be recovered, if any $_____ Computations:
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