Simplifying Discontinued Operations for the FAR CPA Exam | Universal CPA Review

[@fahamahmed2082]

What if there was no impairment loss in year 5, but rather increase in FMv- do we include such gain in Year5 as a result of increase in FMV?

[@rainesilk9791]

Excellent explanation! Thank you so much!

[@universalcpareview]

Glad to help!

[@kawsartuly1565]

I did not understand where in year 6 step 2..how did we calculate -adjusted NBM after impairment to be (400,000).

[@name-ht2qz]

Remember form Year 5, Step 1 we calculated the impairment to be 50,000? Well in Year 6, we are going to assume that is still the impairment loss value. So you take the impairment loss value of 50,000 and subtract it from the GIVEN book value of 450,000 and get NBV (Net book value) of 400,000.

[@istifanusbulus1214]

Great explanation!

[@universalcpareview]

Thank you!!! All of the videos in the course are in this format, so come try a free trial!

[@Fanck540]

Nice explanation

[@universalcpareview]

Thank you!