Calculate the recoverable amount

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Reference no: EM133174482

Question - Jessup Corporation's balance sheet includes the following asset:

Equipment $95,000

Accumulated depreciation: (25,000)

Carrying amount $70,000

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

Asset value in use: $60,000

Fair value less selling costs: $64,000

Assuming Jessup uses the rational entity impairment model,

Calculate the recoverable amount.

Calculate the impairment loss.

Prepare the entry to record the impairment loss.

Reference no: EM133174482

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