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Impairment of Machinery
Writing down an asset whose fair value has fallen below its book value permanently.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Loss | Expense (+) | 3,000.00 | - |
| Accumulated Impairment (or Asset) | Contra-Asset (+) | - | 3,000.00 |
💡 Accountant's Note
If a machine becomes obsolete or damaged, you must reduce its carrying value to reflect its actual worth.
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