Question
Sunland Company has equipment with a carrying amount of $2600000. The expected future net cash flows from the equipment are $2640000, and its fair value
Sunland Company has equipment with a carrying amount of $2600000. The expected future net cash flows from the equipment are $2640000, and its fair value is $2043000. The equipment is expected to be used in operations in the future. What amount (if any) should Sunland report as an impairment to its equipment?
|
| $40000. |
|
| $597000. |
|
| No impairment should be reported. |
|
| $557000. |
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Accounting And Finance For Your Small Business
Authors: Eric James Burton, Steven M Bragg
1st Edition
9780471323600
