Question
ABC Company bought a machine on January 1, 2009 for $100,000. The machines book value on July 1, 2019 is $52,750. Also on July 1,
ABC Company bought a machine on January 1, 2009 for $100,000. The machines book value on July 1, 2019 is $52,750. Also on July 1, 2019 it is determined that the machines future cash flows totaled $50,000 and its fair value is $35,000.
If no active market exists for the machine and the company does not plan to dispose of it, what should ABC Company record as an impairment loss on July 1, 2019, if any?
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Count Down The Past, Present And Uncertain Future Of The Big Four Accounting Firms
Authors: Jim Peterson
2nd Edition
1787147010, 9781787147010
