Devo Co. has an indefinite-life intangible asset with a carrying value of $782,000. The undiscounted cash flows expected to be realized from that asset total $827,000; the discounted cash flows are $574,000; and the fair value of the asset has been determined to be $646,000. What is the amount of the impairment loss to be recorded, if any?
A. $208,000
B. $136,000
C. $35,000
D. -0-
Answer:B
Devo Co. has an indefinite-life intangible asset with a carrying value of $782,000. The undiscounted cash flows expected to be realized from that asset total $827,000; the discounted cash flows are $574,000; and the fair value of the asset has been determined to be $646,000. What is the amount of the impairment loss to be recorded, if any?
A. $208,000 B. $136,000 C. $35,000 D. -0-