Big Bad Corp uses three different machines (A, B, and C) to manufacture products. These...
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Accounting
Big Bad Corp uses three different machines (A, B, and C) to manufacture products. These machines are considered to be a cash generating unit (CGU). Due to climate change and changes in consumer preferences, demand has declined in recent years. The following information is relevant to the evaluation of impairment.
MACHINES-->
A
B
C
Total
Net carrying value
$800,000
$1,430,000
$1,170,000
$3,400,000
Fair value less costs to sell
1,000,000
1,330,000
670,000
3,000,000
Value in use
NA
NA
NA
2,700,000
Required:
Determine the amount of impairment loss, if any, that should be recorded for each of the three machines. Do not use dollar signs 0r +/- in your answer. Round your final answer to the nearest dollar. Do not round intermediary answers.
Machine A - $
Machine B - $
Machine C - $
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