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Impairment for non-financial assets
Instructions:
problem a. Determine the amount of the impairment loss that needs to be recognized by December 31, 2021!
problem b. what entries are required (including depreciation) by December 31, 2021!
problem c. Determine the amount of impairment loss that needs to be recognized by December 31, 2022!
problem d. what entries are required (including depreciation) by December 31, 2022
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Each unit requires four pounds of raw material that costs $3.00 per pound. Management desires to end each quarter with a raw materials inventory equal to 15% of the following quarter’s production needs.
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