When an impairment loss is recorded, the offsetting credit is recorded in accumulated depreciation.

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When an impairment loss is recorded, the offsetting credit is recorded in accumulated depreciation. This is because an impairment loss is a non-cash expense that reduces the value of the asset on the balance sheet, and accumulated depreciation represents the cumulative amount of depreciation expenses recorded for the asset.

When an Impairment Loss Is Recorded, the Offsetting Credit Is