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"Ohio Coffee has been experiencing declining market conditions for its wholesale division. Management decided to test...

"Ohio Coffee has been experiencing declining market conditions for its wholesale division. Management decided to test the assets of the division for possible impairment. The test revealed the following: book value of division’s assets, $113,000; fair value of division’s assets, $100,000; sum of estimated future cash flows generated from the division’s assets, $95,000.

What amount of impairment loss should Ohio Coffee recognize?"
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The answer has been presented in the supporting sheet. for detailed answer refer to the supporting sheet.

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