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5. M&M's trademark has estimated future cash flows of $40 billion, a book value of $60 billion, and fair value of $30 billion. Which of the following should be included in the journal entry necessary to record the impairment of M&M's trademark? a. DEBIT to Loss of $20 billion b. DEBIT to Loss of $30 billion DEBIT to Loss of $10 billion C. d. DEBIT to Loss of $40 billion e. No journal entry is necessary; there is no impairment

5. M&M's trademark has estimated future cash flows of $40 billion, a book value of $60 billion, and fair value of $30 billion. Which of the following should be included in the journal entry necessary to record the impairment of M&M's trademark? a. DEBIT to Loss of $20 billion b. DEBIT to Loss of $30 billion DEBIT to Loss of $10 billion C. d. DEBIT to Loss of $40 billion e. No journal entry is necessary; there is no impairment

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5. M&M's trademark has estimated future cash flows of $40 billion, a book value of $60 billion, and fair value of $30 billion. Which of the following should be included in the journal entry necessary to record the impairment of M&M's trademark? a. DEBIT to Loss of $20 billion b. DEBIT to Loss of $30 billion C. DEBIT to Loss of $10 billion d. DEBIT to Loss of $40 billion e. No journal entry is necessary; there is no impairment
Transcribed Image Text:5. M&M's trademark has estimated future cash flows of $40 billion, a book value of $60 billion, and fair value of $30 billion. Which of the following should be included in the journal entry necessary to record the impairment of M&M's trademark? a. DEBIT to Loss of $20 billion b. DEBIT to Loss of $30 billion C. DEBIT to Loss of $10 billion d. DEBIT to Loss of $40 billion e. No journal entry is necessary; there is no impairment
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