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The "Restoration Cost" Approach to Determining the Extent of an Impairment

Question 42

Multiple Choice

The "restoration cost" approach to determining the extent of an impairment


A) First calculates the percentage decline in the number of service units caused by the impairment.
B) First determines the current cost of an asset that would provide the current impaired level of service.
C) Estimates the cost to restore the utility of an impaired asset.
D) Estimates the change in future cash flows generated by the impaired asset.

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