Oriole Corporation owns machinery with a book value of $512000. It is estimated that the machinery will generate future cash flows$474000. The machinery has a fair value of $427000. Oriole should recognize a loss on impairment of○ $0.O $85000.O $38000.○ $47000.

An impairment occurs when the carrying amount of an asset exceeds the sum of the future cash flows…

Answered: Oriole Corporation owns machinery with…

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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Oriole Corporation owns machinery with a book value of $512000. It is estimated that the machinery will generate future cash flows $474000. The machinery has a fair value of $427000. Oriole should recognize a loss on impairment of ○ $0. O $85000. O $38000. ○ $47000.