Which of the following is a true statement? one year to the next. Companies can change the method of depreciating assets from depreciation can affect the book value at the end of the asset's life by choosing one method of over another. their operational assets but the use a Companies can use one method of depreciation for some of different method for another group or type of operational assets. All are true. None is true. Which of the following statements about asset impairment is false? are less Asset impairment is caused by events or circumstances where the estimated future cash than the asset's original cost. If an asset is impaired, a loss would be recognized in the period it can be estimated. will lead to writing down the asset's cost. Impairment None of the above is false. All of the above are false has some bottling equipment which cost $8.5 million, has a book value of 4.1 million, and has timated future cash flows of 3.7 million expected over its remaining life. The amount to be recorded as a ss is equals: The $8.5 llion cost. The $4.1 million book value inflows. The $0.4 million difference between the book value and its future cash The $4.8 million difference between the asset scost and its future cash flows. Zero, since there is no impairment Lincoln Company determines that an asset has been impaired by so 6 million then which of the lowing will occur at the end of the current accounting period? No action will be taken to recognize its impairment until the asset is sold. The impairment will not affect the accounts but will be disclosed in the footnotes. the income The debit to Retained Earnings will be recorded for the effect of the loss thereby bypassing statement amount of the loss A credit to the asset's account will be recorded for the None of the above will occur company sold an operational asset at a equal to its book value, the company would record price No gain or loss. A gain. A loss. An extraordinary item. None of the above is correct