Question
Sage Corporation's balance sheet includes the following asset: Equipment: $275,000 Accumulated depreciation: 85,000 Sage was notified of a significant change in the technology used to
Sage Corporation's balance sheet includes the following asset:
Equipment: $275,000
Accumulated depreciation: 85,000
Sage was notified of a significant change in the technology used to power the equipment and decided to test for impairment. Sage obtained the following data:
Future cash flows (undiscounted): $125,000
Value in use (discounted): 120,000
Fair value: 160,000
Selling costs: 8,000
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Horngrens Accounting
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
11th edition
978-0133851151, 013385115X, 978-0133866889
