Company A has a piece of equipment that is on their books for $200,000. The company has not used the equipment in years. Should Company A write-down the equipment? What authoritative literature addresses this topic? How should they proceed? Provide proper FASB codification.

Company A has a piece of equipment that is on their books for $200,000. The company has not used the equipment in years. Should Company A write-down the equipment? What authoritative literature addresses this topic? How should they proceed? Provide proper FASB codification.

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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Question

Company A has a piece of equipment that is
on their books for $200,000. The company
has not used the equipment in years. Should
Company A write-down the equipment? What
authoritative literature addresses this topic?
How should they proceed? Provide proper
FASB codification.

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