Answer:
total amount of impairment loss: $139,,000
Explanation:
Given that:
Book value Estimated cash flow Fair value
Building $ 500,000 $ 380,000 $ 360,000
Patent $ 35,000 $ 40,000 $ 38,000
Copyright $ 40,000 $ 38,000 $ 39,000
Machine $ 100,000 $ 120,000 $ 85,000
The impairment loss happens when C-Stop corporation cash flow is less than it's book value.
As we can see that the estimated cash flow of copyright and building are less than the book value, so total amount of impairment loss:
($ 500,000 - $ 360,000 ) - ($ 40,000- $ 39,000 )
= $ 140,000 - $1,000
= $139,000
Hope it will find you well.
