8. On January 2, 2018, Q. Tong Inc. purchased equipment with a cost of $10,440,000, a useful life of 10 years and $40,000 salvage value. The Company uses sum-of-year digits depreciation. At December 31, 2018 and December 31, 2019, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/2018 $9,315,000 $9,350,000 12/31/2019 $6,500,000 $6,215,000 Fair value less cost to sell Value-in-use There is no change in the asset's useful life or salvage value. The 2019 income statement will report: A. Impairment Loss of $347,273. B. Impairment Loss of HK$10,000. C. Recovery of Impairment Loss of $347,273. D. Recovery of Impairment Loss of HK$1,000,000. Use the following information for questions 9-10. A company uses the retail inventory method. The following information is available for the

8. On January 2, 2018, Q. Tong Inc. purchased equipment with a cost of $10,440,000, a useful life of 10 years and $40,000 salvage value. The Company uses sum-of-year digits depreciation. At December 31, 2018 and December 31, 2019, the company determines that impairment indicators are present. The following information is available for impairment testing at each year end: 12/31/2018 $9,315,000 $9,350,000 12/31/2019 $6,500,000 $6,215,000 Fair value less cost to sell Value-in-use There is no change in the asset's useful life or salvage value. The 2019 income statement will report: A. Impairment Loss of $347,273. B. Impairment Loss of HK$10,000. C. Recovery of Impairment Loss of $347,273. D. Recovery of Impairment Loss of HK$1,000,000. Use the following information for questions 9-10. A company uses the retail inventory method. The following information is available for the

Name: 8. On January 2, 2018, Q. Tong Inc. purchased equipment with a cost o
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Description: 8. On January 2, 2018, Q. Tong Inc. purchased equipment with a cost of $10,440,000, auseful life of 10 years and $40,000 salvage value. The Company uses sum-of-year digitsdepreciation. At December 31, 2018 and December 31, 2019, the company determin

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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