Detailed Answer
(b) After an impairment loss is recognized, the reduced
carrying amount of the asset shall be accounted for as its new
cost. This new cost (the fair value of the asset at the date of impairment,
or $135,000) shall be depreciated over the asset’s remaining
useful life (twenty-seven months). Therefore, the depreciation
expense for June is $5,000 ($135,000 ÷ 27 months × 1
month).