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Impairment Loss of HRS

Impairment Loss of HRS

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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On January 2, 2018, Rahaf purchased equipment with a cost of HK$2,088,000, a useful life of 10 years and no salvage value. The company uses straight-line depreciation. At December 31, 2018 and December 31, 2019, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/2018 12/31/2019 Fair value less costs to sell HK$1,863,000 Hk$1,770,000 Value-in-use HK$1,870,000 HK$1,783,000 There is no change in the asset's useful life or salvage value. The 2018 income statement will report Impairment Loss of HK$
Transcribed Image Text:On January 2, 2018, Rahaf purchased equipment with a cost of HK$2,088,000, a useful life of 10 years and no salvage value. The company uses straight-line depreciation. At December 31, 2018 and December 31, 2019, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/2018 12/31/2019 Fair value less costs to sell HK$1,863,000 Hk$1,770,000 Value-in-use HK$1,870,000 HK$1,783,000 There is no change in the asset's useful life or salvage value. The 2018 income statement will report Impairment Loss of HK$
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