Walt Disney SEC 2020 Multiple Choice Problem Set:

Instructions: Please use the Walt Disney 2020 SEC to answer the following three parts of the problem set:

A.If the Recoverability Test indicates an impairment for a Property Plant & Equipment asset held for use, the loss is the amount by which the carrying amount of the asset exceeds:

the book value of the asset.

the historical cost of the asset.

the fair value of the asset.

the sum of the estimated undiscounted future net cash flows from the use of that asset and its disposition.

B. Which earnings per share amounts are reported in a complex capital structure?

Basic EPS only

Diluted EPS only

Basic and Simple EPS

Basic and Diluted EPS

C. The first step of an impairment test for a long-lived asset is the Recoverability Test. In the Recoverability Test, the assets carrying amount is compared to:

the sum of the estimated discounted future net cash flows from the use of that asset and its disposition.

the sum of the estimated undiscounted future net cash flows from the use of that asset and its disposition.

the assets original historical cost.

the assets fair market value.