In 2010, Mennora Corporation acquired production machinery at a cost of $410,000, which now has a book value of $190,000. The undiscounted cash flows from use of the machinery is $175,000. and it’s fair value is $135,000. What amount should Menorrah recognize as a loss on impairment?
A. $15,000
B. $40,000
C. $55,000
D. -0-
Answer:C
In 2010, Mennora Corporation acquired production machinery at a cost of $410,000, which now has a book value of $190,000. The undiscounted cash flows from use of the machinery is $175,000. and it’s fair value is $135,000. What amount should Menorrah recognize as a loss on impairment?
A. $15,000 B. $40,000 C. $55,000 D. -0-