When an impairment loss is recorded for a depreciable asset, the offsetting credit is recorded in accumulated depreciation.

Question

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When an impairment loss is recorded for a depreciable asset, the carrying value of the asset is reduced. The offsetting credit is recorded in accumulated depreciation, which represents the cumulative depreciation expense that has been recognized on the asset.

When an Impairment Loss Is Recorded for a Depreciable Asset