1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Taya2010 [7]
3 years ago
14

The demand for one of X Company’s products has declined in recent years. The product is manufactured using designated equipment

that originally cost $1,300,000 and has a carrying value of $720,000. As of the current date, December 31, 20X2, it is expected that only an additional 400,000 units are likely to be sold over the remaining life of the equipment. Each unit sells for $3 and has a manufacturing cost of $1.50. Relevant information as of December 31, 20X2: The undiscounted future cash inflows from the sale of products over the life of the equipment is expected to be $600,000. The present value of the future cash inflows from the sale of products over the life of the equipment, calculated at the company’s cost of capital, is $475,000. The equipment has a fair value of $490,000 on the date of evaluation. How much of an impairment loss will X Company recognize in 20X2?
Business
1 answer:
Scrat [10]3 years ago
6 0

Answer: $230,000

Explanation:

In our case,

Undiscounted future cash inflows from the sale of the product = $ 600,000 and

Carrying value of the asset = $ 720,000.

We can come to a conclusion that the benefit we get from the sale of the asset is less that carrying value.

Hence, the asset is said to be impaired.

Therefore,

Impairment Loss = Carrying value - Fair value of the asset

                            = 720,000 - 490,000

                            = $230,000.

You might be interested in
In the context of opportunity identification and selection, DuPont's discovery of Surlyn, a material with hundreds of potential
oksian1 [2.3K]

Answer: The correct answer is "B. A new resource".

Explanation: The discovery of Surlyn de DuPont, being a new material with multiple potential uses, which could be applied to the manufacture of many products would clearly fall under the category "a new resource".

5 0
3 years ago
Read 2 more answers
Extremely autonomous children A. usually have strict discipline at home. B. suffer from self-doubt. C. can't be creative. D. may
Sidana [21]
A. usually have strict discipline at home

4 0
2 years ago
Read 2 more answers
the observation that a country reached automotive production overcapacity in 2018, is an aspect of the segment of the general en
rodikova [14]

The observation that a country reached automotive production overcapacity in 2018, is an aspect of the global segment of the general environment

<h3>What an environment</h3>

An environment includes everything that makes up the earth. This include people, animals, plant, economy, business, culture etc. They all have a role to play in the day to day activities and how an individual act and react.

The global segment of environment is the aspect that affects all countries and people.

Therefore, the observation that a country reached automotive production overcapacity in 2018, is an aspect of the segment of the general environment

Learn more on environment below

brainly.com/question/16755022

#SPJ1

5 0
2 years ago
Stewart Inc.'s latest EPS was $3.50, its book value per share was $22.75, it had 220,000 shares outstanding, and its debt-to-ass
stellarik [79]

Answer: Option (c) is correct.

Explanation:

Given that,

EPS = $3.50

Book value per share = $22.75

Shares outstanding = 220,000

Debt-to-assets ratio = 46%

Total Equity (Book Value) = Book value per share × Shares outstanding

                    = $22.75 × 220,000

                    = $5,005,000

Total Assets = \frac{Total\ Equity}{1 - Debt\ to\ assets\ ratio}

                     =  \frac{5,005,000}{1 - 0.46}

                     = $9,268,518.52

Debt outstanding = Total Assets - Total Equity

                              = $9,268,518.52 - $5,005,000

                              = $4,263,518.52

                              = $4,263,519 (approx)

5 0
2 years ago
In large hotels, who is responsible for the recruitment of reservations staff?
artcher [175]

Answer:

C. the human resources manager

Explanation:

In large organizations, employee recruitment is the function of the human resource manager. The Human resource manager is an expert in employee affairs and works closely with the other managers to hire the right workers for each position.

The human resource manager coordinates the recruitment process, starting with advertising for the position, shortlisting, conducting interviews, and appointing the best candidate.

4 0
3 years ago
Read 2 more answers
Other questions:
  • How much would Vincent have in his account after three years if he started with $100 and earns 5% compounding annually?
    14·1 answer
  • Although many people believe that the only academic path after high school is a college degree if you want to get a good job, th
    9·2 answers
  • Comet Company accumulated the following account information for the year:
    11·1 answer
  • How does a high unemployment rate affect the economy
    7·1 answer
  • Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is Dece
    10·1 answer
  • Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with a
    15·1 answer
  • Brown Company manufactures luggage sets. Brown sells its luggage sets to department stores. Brown expects to sel 1,700 luggage s
    12·1 answer
  • Suppose there is a rash of pickpocketing. As a result, people want to keep less cash on hand, decreasing the demand for money. A
    11·2 answers
  • The following data were accumulated for use in reconciling the bank account of Wolfpack Bread Inc. for August 20Y9:
    10·1 answer
  • Enith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts P
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!