Question

Waterway Industries has equipment with a carrying amount of $2510000. The expected future net cash flows from the equipment are $2545000, and its fair value is $2043000. The equipment is expected to be used in operations in the future. What amount (if any) should Waterway report as an impairment to its equipment

Answer 1

No impairment

Step-by-step explanation:

Since the future net cash flows are still recoverable and they are higher than carrying amount, none needs to be reported