A company purchased equipment for $800,000 and has depreciated it for the past 5 years Its original life was estimated to be 10 years with a $200,000 residual value. However,

A company purchased equipment for $800,000 and has depreciated it for the past 5 years Its original life was estimated to be 10 years with a $200,000 residual value. However, the equipment’s utility to the company has since declined and they expect it to generate a net cash flow over the remaining years of $200,000 from its operation. If the asset has been impaired, how much will be recorded as a loss in the current year?


Leave a Reply

Your email address will not be published.