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** 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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