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 new carrying value of the asset after impairment loss has been recorded?
A. $827,000
B. $646,000
C. $574,000
D. $136,000
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 new carrying value of the asset after impairment loss has been recorded?
A. $827,000 B. $646,000 C. $574,000 D. $136,000