Answer:
(b)-Debit to loss on impairment of $12,000
Explanation:
As for the details in question,
The asset purchase price = $100,000
Accumulated depreciation = $40,000
Thus, book value = Purchase price - Accumulated depreciation = $100,000 - $40,000 = $60,000
Now, this has a fair market value = $48,000
Thus, loss of value to be recorded as impairment loss = $60,000 - $48,000 = $12,000
Since loss in value will decrease the value of asset, it will be debited against credit in fixed assets by $12,000
This, will represent book value = $48,000
Therefore, correct option is:
Statement B
