The impairment loss for an asset that a company intends to hold and use is the...
The impairment loss for an asset that a company intends to hold and use is the difference between?
a. Assets book value and its lower fair value
b. Assets book value and its fair value
c. Present value of discounted cash flows and the book value
d. Asset’s fair value and the present value of the discounted cash flow
Homework Answers
Option A is the answer
When the fair value of an asset is lower than the book value of asset then its called as impairment of asset. So impairment loss can be calculated as difference between book value and lower fair value
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The impairment loss for an asset that a company intends to hold
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the carrying value including goodwill of S Co. was: *
a) $1,401,000
b) $1,403,000
c) $1,400,000
d) $1,402,000
2) After doing goodwill impairment test in year 2018, the result
was: *
a) Impairment loss of $13,000
b) No Impariment loss
c) Impairment loss of $12,000
d) Impairment loss of $10,000
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