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    Amount of impairment loss

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    Which of the following statements concerning the impairment of fixed assets is true?

    I. Impairment losses are shown on the income statement net of tax.

    II. An impairment loss is recognized if the present value of all expected future cash flows produced by the fixed asset is less than carrying value.

    III. To determine the amount of any impairment loss, fair value must be used.

    o I.
    o II.
    o III.
    o I and II.

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    Solution Summary

    The solution explains how to determine the amount of impairment loss