Question
** Please put correct answers in blanks Presented below is information related to equipment owned byRiverbedCompany at December 31, 2020. Cost$8,680,000 Accumulated depreciation to date
** Please put correct answers in blanks
Presented below is information related to equipment owned byRiverbedCompany at December 31, 2020.
Cost$8,680,000
Accumulated depreciation to date
992,000
Expected future net cash flows
6,200,000
Fair value4,216,000
Assume thatRiverbedwill continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 4 years.
Fill the missing amounts and choose the correct option.
ForRiverbedcompany, the recoverability test compares $_____________________
to $_________________
As a result, the asset
fails or passes _______________________
the recoverability test,
because__________________
the expected future net cash flows
the expected present net cash flows
is/are less than________________________
the market value of the asset
the book value of the asset
so again or lost ____________________
on impairment is recorded in 2020.
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