Question
Asked Nov 21, 2019
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The following information is available for Carla Vista Company’s patents:

Cost $3190000
Carrying amount 1670000
Expected future net cash flows 1355000
Fair value 1175000



Carla Vista would record a loss on impairment of ? 

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Expert Answer

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Step 1

Loss on impairment represents the amount ofdecrease in the carrying value of asset, due to lesser fair value of the asset than its carrying value.

Step 2

Determine the amount of l...

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$1,670,000 $1,175,000 Carrying value Less: Fair value Loss on impairment $ 495,000

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