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Unformatted text preview: Impairment loss = net book value fair value of the asset Under GAAP, the asset must be written down to its fair value: Impairment loss XXX Asset XXX (XXX = net book value fair value) M8-7 a. Impairment loss 7,000 Machine 7,000 b. Not impaired c. Impairment loss 32,000 Factory building 32,000 d. Not impaired Fixed Asset Turnover Net Sales Average Net Fixed Assets Publix Super Markets (in thousands): 21,654,774 (3,047,881 + 3,099,322)/2 = 7.05 ConcoPhillips (in millions): 183,650 (54,669 + 86,201)/2 = 2.61...
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