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VLD [36.1K]
3 years ago
11

Technique Co. has equipment with a carrying amount of $1,600,000. The expected future net cash flows from the equipment are $1,6

30,000, and its fair value is $1,360,000. The equipment is expected to be used in operations in the future.
What amount (if any) should Technique report as an impairment to its equipment?


a. No impairment should be reported.
b. $240,000
c. $30,000
d. $270,000
Business
1 answer:
Vesnalui [34]3 years ago
6 0

Answer:

correct option is a. No impairment should be reported

Explanation:

given data

carrying amount = $1,600,000

net cash flows = $1,630,000

fair value = $1,360,000

to find out

amount report as an impairment to its equipment

solution

we know that here impairment loss is carrying amount - higher of fair market value and value in use    ..................1

here recoverable value is = $1630000

so

impairment loss is = $1600000 - $1630000

impairment loss  = - $30000

here loss is negative

so that correct option is a. No impairment should be reported

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The par value of common stock must always be equal to its market value on the date the stock is issued.
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5 0
2 years ago
Mary's Baskets Company expects to manufacture and sell​ 30,000 baskets in 2019 for​ $5 each. There are​ 4,000 baskets in beginni
algol13

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Mary's Baskets Company expects to manufacture and sell​ 30,000 baskets in 2019 for​ $5 each.

<u>Sales revenue is the result of multiplying the number of units sold for the selling price per unit:</u>

<u></u>

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Read 2 more answers
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Answer:

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