In 2011, ZeeTee Inc. acquired production machinery at a cost of $630,000, which now has a accumulated depreciation of $380,000. The undiscounted cash flows from use of the machinery is $220,000. and it’s fair value is $195,000. What amount should Condor recognize as a loss on impairment?
A. $185,000
B. $55,000
C. $25,000
D. -0-
Answer:B
In 2011, ZeeTee Inc. acquired production machinery at a cost of $630,000, which now has a accumulated depreciation of $380,000. The undiscounted cash flows from use of the machinery is $220,000. and it’s fair value is $195,000. What amount should Condor recognize as a loss on impairment?
A. $185,000 B. $55,000 C. $25,000 D. -0-