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  3. 1. on january 1 year 3, white company bought a bui

1. On January 1 year 3, White Company bought a building for Br 500,000. The...

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Accounting

1. On January 1 year 3, White Company bought a building for Br 500,000. The building has an estimated useful life of 25 years with no residual value. White uses the straight line method to depreciate its building. On December 31, year 4 the recoverable amount of the building Br 400,000 and on December 31, year 6 the recoverable amount of the building is Br 450,000 Required: a) Calculate the amount to be recorded as impairment loss and show the necessary journal entries on December 31, year 4 b) Record the loss reversal (if there is any ) on December 31, year 6

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