Sandhill Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a December 31 year end. It purchased equipment on January 1, 2020, for $195,700. The equipment had an estimated useful life of five years and a residual value of $21,640. On December 31, 2021, the company tests for impairment and determines that the equipment's fair value is S108,400. Calculate the amount of the impairment loss, if any.

Sandhill Corporation uses straight-line depreciation, prepares adjusting entries annually, and has a December 31 year end. It purchased equipment on January 1, 2020, for $195,700. The equipment had an estimated useful life of five years and a residual value of $21,640. On December 31, 2021, the company tests for impairment and determines that the equipment's fair value is S108,400. Calculate the amount of the impairment loss, if any.

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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