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
What are Financial Statements??​
kiruha [24]

Answer:

Financial statements are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.

Explanation:

Hope this helps

7 0
2 years ago
Read 2 more answers
Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidi
stira [4]

Answer:

d. the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.

Place more oil on the market this year, shifting the curve rightward.

Explanation:

1. In the given scenario the government is willing to give home-construction companies $10,000 for every house that they build.

This will result in more willingness on the part of the construction companies to build more houses.

More houses built means more income coming in from the government.

Therefore the supply curve of home building will shift to the right.

2. When oil producers expect prices of oil to increase in the next year, there is a need to control oil prices by increasing availability of oil in the market.

Increase in price results from a scarcity of oil. So to mitigate this excess oil is supplied to control price increase.

This action will shift the curve rightward.

6 0
3 years ago
What is the amount of earnest money deposit paid by the purchaser called?
sesenic [268]
Determined by negotiation is the amount of earnest money deposit paid by the purchaser.
6 0
3 years ago
In nations undergoing economic devolpment the levels of politicals internationalizing firms must deal with trends to be greater
Likurg_2 [28]

Here is the correct question:

In nations undergoing economic development the levels of political internationalizing firms must deal with trends to be greater than it is in countries that are already significantly industrialized.

True or False

Answer:

TRUE

Explanation:

In nations undergoing economic development, there is a strong relationship between politics and economic development; hence, the level of political internationalizing firms must deals with trends greater than it is in industrialized economies.

7 0
3 years ago
Monroe county levies a tax on the value of real property located within the county. The tax equals 3 percent of the property's a
Vikentia [17]

Answer:

a. $39,000

b. $85,000

Explanation:

The computations are shown below:

a. Tax on real property would be

= Valued of real property × tax rate

= $1,300,000 × 3%

= $39,000

b. Tax on real property would be

= Property's assessed value up  × tax rate + difference of property value  × increased tax rate

= $2,000,000 × 3% + $2,500,000 × 1%

= $60,000 + $25,000

= $85,000

8 0
3 years ago
Other questions:
  • You sit on the board of a public corporation. Your CEO has proposed taking steps to offset the carbon impact of your​ company's
    9·2 answers
  • What is a philosophy that aggressively seeks to improve product quality by eliminating causes of product defects and making qual
    13·1 answer
  • The Roberts family just received news from Jo-Anne Roberts' employer that she was receiving a prestigious promotion to Corporate
    5·1 answer
  • Researchers have ridden alongside motorcycle enthusiasts to understand the relationship between riders and their beloved Harley-
    10·1 answer
  • Assume that TarMart purchased equipment at the beginning of fiscal year 2016 for $480,000 cash. The equipment had an estimated u
    6·1 answer
  • Payback period was the earliest -Select- selection criterion. The -Select- is a "break-even" calculation in the sense that if a
    7·1 answer
  • g Operating activities: Multiple Choice Are the means organizations use to pay for resources like land, buildings and equipment.
    14·1 answer
  • Every night after working the swing shift, Sierra stops by the 24-Store near her house. She often buys bread, cold cuts, and Dr.
    10·1 answer
  • During the listing presentation, it would be appropriate for broker Ted to present the statutory written statement regarding bro
    7·1 answer
  • Harold is a sales manager associated with TickTock Watches for the past thirty-five years; he was instrumental in the company's
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!