For each of the following scenarios, use the two step approach to determine whether a long-term asset has been impaired and, if so, the amount of loss that should be recorded.
a. Equipment
Net book value: $450,000
Estimated future cash flows: $400,000
Fair value: $425,000
b. Patent
Net book value: $650,000
Estimated future cash flows: $750,000
Fair value: $700,000

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The Answer of For each of the following scenarios, use the two step approach to determine whether a long-term asset has been impaired and, if so, the amount of loss that should be recorded.
a. Equipment
Net book value: $450,000
Estimated future cash flows: $400,000
Fair value: $425,000
b. Patent
Net book value: $650,000
Estimated future cash flows: $750,000
Fair value: $700,000

For Each of the Following Scenarios, Use the Two Step