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Question - On January 1, 2017, CBSA Company purchased equipment with a cost of €5,000,000 with a useful life of 10 years and no salvage value. The company uses straight-line depreciation.
On December 31, 2018, the company determines that impairment indicators are present. The fair value less cost to sell the asset is estimated to be €3,600,000. The asset's value-in-use is estimated to be €3,700,000. CBSA Company intends to continue using the equipment in the future and the remaining useful life is 8 years.
Compute the impairment loss (if any) that CBSA Company reports on December 31st, 2018?
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