When an asset is impaired,the firm will determine a new carrying amount based upon its expectation of future economic benefits.

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When an asset is impaired, the firm will determine a new carrying amount based upon its expectation of future economic benefits. This new carrying amount is the amount that the asset is expected to generate in the future, which may be lower than its original cost or carrying amount. This adjustment is necessary to reflect the decline in the value of the asset and to ensure that the financial statements accurately reflect the economic reality of the situation.

When an Asset Is Impaired,the Firm Will Determine a New