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What is the recoverable amount for innovative inc

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Reference no: EM132936061

Innovative Inc. has a piece of equipment with a carrying amount of $175,000. Technology has changed, indicating that the machine may be impaired. A new machine with updated technology could be purchased for $350,000. A used machine of similar vintage is listed on-line for $160,000. The expected future cash flows from continuing to use the asset are $148,000. The estimated value if the company sold the asset less commission costs is $155,000.

Required:

Problem 1) What is the recoverable amount?

Problem 2) What is the amount of impairment?

Reference no: EM132936061

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