An analyst gathers the following information about PP&E that is abandoned and accounted for using the cost model:
Carrying value £10 million
Fair value at time of abandonment £1 million
Assuming no impairment, the abandonment of PP&E on the financial statements will result in a:
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A.
decrease of £10 million in PP&E.
B.
loss of £1 million on the income statement.
C.
decrease of £1 million on the cash flow statement.
decrease of £10 million in PP&E.
B.
loss of £1 million on the income statement.
C.
decrease of £1 million on the cash flow statement.
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