Question
Due to unexpected changes in economic conditions during 2017, management of Fryer Inc. believes that the fair value of equipment has increased over the original
Due to unexpected changes in economic conditions during 2017, management of Fryer Inc. believes that the fair value of equipment has increased over the original cost of the equipment (is greater than $90 million).
| A. Management can reverse any impairment losses recorded in the past years to bring the book value up to the original cost of equipment. | |
| B. Management can reverse any past impairment losses, and in addition, record an unrealized gain for the difference between the current fair value and the original cost of the equipment of $90 million. | |
| C. Management must record any reversal of past impairment losses in a deferred gain account in OCI. | |
| D. None of the other answers. |
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Accounting Theory And Practice
Authors: M. W. E. Glautier, Brian Underdown
7th Edition
0273651617, 978-0273651611
