Question
X Company acquired a printing press for $350,000 that is expected to have a useful life of 20 years and a salvage value of $20,000.
X Company acquired a printing press for $350,000 that is expected to have a useful life of 20 years and a salvage value of $20,000. It is expected that the press will have very little resale value but is essential to the company as it is the companys primary revenue producing asset. When is X Company required to evaluate the asset for impairment?
At least annually. | ||
Only when events or circumstances indicate that the carrying value will not be recovered during the assets remaining life. | ||
Whenever financial statements are prepared. | ||
When the fair value of the printing press exceeds its carrying value. |
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