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Queson 4 Not complete Morked out 400 P Ras question Computing and Assessing Plant Asset Impairment On July 1, Arcola Company purchases equipment for $330.000.
Queson 4 Not complete Morked out 400 P Ras question Computing and Assessing Plant Asset Impairment On July 1, Arcola Company purchases equipment for $330.000. The equipment has an estimated useful life of 10 years and expected salvage value of 540000. The company uses straight line depreciation. Four years later, economic factors cause the far value of the equipment to decline to $160,00. On this date, Areola examines the equipment for Impalement and estimates $185,000 in undiscounted expected cash inflows from this equipme tl Compute the annual depreciation expense relating to this equipment $ (1 ) Compute the equipmen's net book value at the end of the fourth year, S O ( Apply the test of Impairment to this equipment as of the end of the fourth year, is the equipment impairedf Show supporting computations Oves , because the far value is less than the net book valve. Oves , because the net book value is greater than the savage value. Oves, because the undiscounted expected cash fows are less than net book value No, because the net book value minus the salvage value is greater than the undiscounted eipected cash flows. No, because the net book value minus the salvage value is less than the undscounted expected cash flows. If the comert is impaired at the end of the fourth yo, comoute the impairment loss the counter is not impaired enter
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