The entry to record an impairment loss on equipment would include which of the following?

Credit to Equipment Impairment

Debit to Accumulated Depreciation, Equipment

Credit to Loss on Impairment of Equipment

Debit to Cash

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The entry to record a gain on the increase in value of land would include which of the following?

Credit to Gain on Land Increase

Debit to Land

Credit to Non$-$Impairment of Land

No entry is required

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Occasionally, events occur that change an asset's value after purchase. Which of the following is true regarding these changes in value?

Neither decreases nor increases are recognized.

Increases in asset value are recognized.

Reductions in asset value are recognized.

Both decreases and increases are recognized.

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Under U$.$S$.$ accounting rules $($generally accepted accounting principles$),$ an asset is impaired when:

The asset's market value is less than the book value

The asset's future cash inflows are less than the book value

The asset's cost is less than the book value

The asset's fair value is less than the book value

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Once an asset has been determined to be impaired, the amount of impairment is measured as:

The asset's future cash inflows minus the book value

The asset's cost minus the fair value

The asset's book value minus the fair value

The asset's cost minus the book value

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If an asset value recovers after an impairment loss has been recognized for the asset, what amount of restoration of that loss is recognized?

The difference between the original loss and the new value

The difference between the original cost and the new value

The difference between the value recognized at the impairment and the new value

None of the recovered value is recognized

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Zenda Corporation purchased a building for $$800,000.$ The current book value of the building is $$400,000$ and the fair value is $$360,000.$ The sum of future cash flows from the building is $$320,000.$ The amount of impairment loss that should be recognized is:

$$0$

$$240,000$

$$40,000$

$$80,000$

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Tanner Company purchased a building during $2010$ for $$600,000.$ From $2010$ to $2012,$ $$240,000$ of depreciation was recorded. The current fair value is $$350,000$ and the sum of future cash flows from the building is $$370,000.$ The amount of impairment that should be recognized is:

$$20,000$

$$10,000$

$$30,000$

$$0$