In 2011, DimDung Inc. Company acquired production machinery which now has a book value of ¥740,000. The undiscounted cash flows from use of the machinery is ¥365,000. and it’s fair value is ¥350,000. DimDung has determined that an impairment loss has occurred. What is the carrying value of the machinery after the journal entry to record the impairment loss has been recorded?
A. ¥390,000
B. ¥375,000
C. ¥365,000
D. ¥350,000
Answer:C
In 2011, DimDung Inc. Company acquired production machinery which now has a book value of ¥740,000. The undiscounted cash flows from use of the machinery is ¥365,000. and it’s fair value is ¥350,000. DimDung has determined that an impairment loss has occurred. What is the carrying value of the machinery after the journal entry to record the impairment loss has been recorded?
A. ¥390,000 B. ¥375,000 C. ¥365,000 D. ¥350,000