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SumallCorporation owns machinery that was purchased 20 years ago. The machinery, which originally cost $2,000,000, has been depreciated using the straight-line method using a 40-year
SumallCorporation owns machinery that was purchased 20 years ago. The machinery, which originally cost $2,000,000, has been depreciated using the straight-line method using a 40-year useful life and no salvage value and has a current canying amount of $1 000 000 and a current fair value of $800,000 Sumrall estimates that the machinery has a remaining useful life of 20 years and will provide net cash inflow of $45.000 per year. Sumrall should record an impaiment loss associated with the machinery of O A. $0 since there is no impairment. B. $150,000 OC. $100,000 D. $200.000 h Sumrall Corporation owns machinery that was purchased 20 years ago. The machinery, which originally cost $2,000,000 has been depreciated using the straight-line method using a 40-year useful life and no salvage value and has a current carrying amount of $1,000,000 and a current fair value of $800,000 Sumrall estimates that the machinery has a remaining useful life of 20 years and will provide net cash inflow of $45,000 per year. Sumrall should record an impairment loss associated with the machinery of O A. $0 since there is no impairment. OB. $150,000 O C. 5100,000 OD. $200,000
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