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Calculate the recoverable amount

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Reference no: EM132759973

Question - Cougar Corp.'s balance sheet includes the following asset:

Equipment $95,000

Less: accumulated depreciation (25,000)

Book value (carrying amount) $70,000

After performing its annual review for impairment, Cougar obtains the following data:

Asset's value in use $58,000

Fair value less disposal costs 62,000

Assuming Cougar uses the rational entity impairment model,

a) Calculate the recoverable amount.

b) Calculate the impairment loss.

c) Make the entry to record the impairment loss.

Reference no: EM132759973

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