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Question - At the year-end, Zee Company has an equipment with the following cost and accumulated depreciation:
Equipment 9,000,000
Accumulated Depreciation 3,000,000
Due to obsolescence and physical damage, the equipment is found to be impaired.
At year-end, the entity has determined the following information related to the equipment:
Fair value less cost of disposal 4,500,000
Value in use or discounted net cash inflows 4,000,000
What amount should be reported as impairment loss for the year?
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