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Gibbon Corp., a Canadian public corporation, owns equipment for which the following year-end information is...

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Accounting

Gibbon Corp., a Canadian public corporation, owns equipment for which the following year-end information is available:

Carrying amount (book value).$59,000

Recoverable amount...52,000

Fair value less disposal costs..55,000

Which of the following best describes the proper accounting treatment for Gibbon's equipment?

It is not impaired and a loss should not be recognized.

It is impaired and a loss must be recognized, with no reversal possible.

It is not impaired, but a loss must be recognized.

It is impaired and a loss must be recognized, but the loss but may be reversed in future periods.

2 points

  • Question 7 of 10

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