A company reports the following information at year-end: Book Value Estimated Cash Flows Fair Value Building $ 500,000 $ 420,000 $ 360,000 Patent $ 35,000 $ 50,000 $ 42,000 Copyright $ 40,000 $ 38,000 $ 29,000 Machine $ 100,000 $ 120,000 $ 85,000 Based on the above information, what is the total amount of impairment loss that the company should record at year-end?

A company reports the following information at year-end: Book Value Estimated Cash Flows Fair Value Building $ 500,000 $ 420,000 $ 360,000 Patent $ 35,000 $ 50,000 $ 42,000 Copyright $ 40,000 $ 38,000 $ 29,000 Machine $ 100,000 $ 120,000 $ 85,000 Based on the above information, what is the total amount of impairment loss that the company should record at year-end?

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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	Book Value	Estimated Cash Flows	Fair Value
Building	$ 500,000	$ 420,000	$ 360,000
Patent	$ 35,000	$ 50,000	$ 42,000
Copyright	$ 40,000	$ 38,000	$ 29,000
Machine	$ 100,000	$ 120,000	$ 85,000

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