Notes receivable are different than accounts receivable in that notes have a stated interest rate and a maturity. True False

Tony needs $25,000 in four years. He must determine the required lump sum to invest now at 12% compounded quarterly. This is an application of the present value of a single sum.

True

False

Equipment cost is $800,000. Accumulated depreciation is $200,000. Expected future cash flows from the equipment is now $580,000. The fair value of the equipment (discounted cash flows) is $525,000. Which is correct?

Group of answer choices

Impairment loss of $20,000

Impairment loss of $75,000

No impairment

Not enough information is provided