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Impaired Asset
An asset that has a market value significantly below its carrying amount on the balance sheet, indicating that recoverable amount is less than its book value, necessitating a write-down.
Depreciation Expense
The monetary value reduction in an asset's cost over its useful life due to wear and tear, age, or obsolescence.
Book Value
The net value of an asset according to its balance sheet account balance, calculated as the original cost minus accumulated depreciation.
Impairment Loss
The amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.
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