The following information is available for Carla Vista Company’s patents: Cost $3190000 Carrying amount 1670000 Expected future net cash flows 1355000 Fair value 1175000 Carla Vista would record a loss on impairment of ?

The following information is available for Carla Vista Company’s patents: Cost $3190000 Carrying amount 1670000 Expected future net cash flows 1355000 Fair value 1175000 Carla Vista would record a loss on impairment of ?

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

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The following information is available for Carla Vista Company’s patents:

Cost	$3190000
Carrying amount	1670000
Expected future net cash flows	1355000
Fair value	1175000

Carla Vista would record a loss on impairment of ?

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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