Blossom Company must perform an impairment test on its equipment. The equipment will produce the following cash flows: Year 1, $37,000; Year 2, $46,000; Year 3, $56,000. The discount rate is 12%. What is the value in use for this equipment? Use the present value table in your calculation. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 2 decimal places, eg. 5,275.25) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Value in use $
Blossom Company must perform an impairment test on its equipment. The equipment will produce the following cash flows: Year 1, $37,000; Year 2, $46,000; Year 3, $56,000. The discount rate is 12%. What is the value in use for this equipment? Use the present value table in your calculation. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 2 decimal places, eg. 5,275.25) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Value in use $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Blossom Company must perform an impairment test on its equipment. The equipment will produce the following cash flows: Year 1.
$37,000: Year 2,546,000; Year 3, $56,000. The discount rate is 12%. What is the value in use for this equipment? Use the present
value table in your calculation. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to
2 decimal places, e.g. 5,275.25)
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
Value in use
$
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