Rational Entity Impairment Model
Cougar Corp $\$ 58,000$ Fairvalue Less Disposal Costs

Rational entity impairment model
Cougar Corp.'s balance sheet includes the following asset:
Equipmant..................................................$95,000
Less: accumulated depreciation......................(25,000)
Book value (carrying amount).........................$70,000
After performing its annual review for impairment, Cougar obtains the following data:
Asset's value in use.............................................. $\$ 58,000$
Fairvalue less disposal costs................................62,000 Instructions
Assuming Cougar uses the rational entity impairment model,
a) Calculate the recoverable amount.
b) Calculate the impairment loss.
c) Prepare the entry to record the impairment loss.