Answer:
$8,000
Step-by-step explanation:
Given that,
Equipment:
Book value = $48,000
Estimated Undiscounted Cash Flows = $43,000
Fair value = $40,000
Building:
Book value = $81,000
Estimated Undiscounted Cash Flows = $83,000
Fair value = $78,000
Patent:
Book value = $43,000
Estimated Undiscounted Cash Flows = $47,000
Fair value = $45,000
From the above information, we can conclude that only the equipment is impaired as it is the only asset whose estimated future cash flows are less than its book value.
The impairment loss obtained from the asset is determined as the difference between the fair value and the book value.
Amount of loss should be recorded due to asset impairments:
= Book value - Fair value
= $48,000 - $40,000
= $8,000