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  QUESTION 129 Impairment of contract cost assets Data Co enters into a two-year contract with a customer to build a data center in exchange for consideration of $ 1,000,000. Data Co incurs incremental costs to obtain the contract and costs to fulfill the contract that are recognized as assets and amortized over the expected period of benefit. The economy subsequently deteriorates and the parties agree to renegotiate the pricing in the contract, resulting in a modification of the contract terms. The remaining amount of consideration to which Data Co expects to be entitled is $ 650,000. The carrying value of the asset recognized for contract costs is $ 600,000. An expected cost of $ 150,000 would be required to complete the data center. How should Data Co account for the asset after the contract modification?

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