Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. i need explain for these answers impairment loss

I need explain for these answers Impairment Loss On May 1, 2016, Smooth,...

90.2K

Verified Solution

Question

Accounting

imageI need explain for these answers

Impairment Loss On May 1, 2016, Smooth, Inc., purchased machinery for $360,000; the estimated useful life was eight years and the expected salvage value was $15,000. Straight-line depreciation is used. On May 1, 2018, economic factors cause the market value of the machinery to decrease to $190,000. On this date, Smooth evaluates whether the machinery is impaired. a. Assume that on May 1, 2018, Smooth estimates future cash flows relating to the use and disposal of the machinery to be $270,000. Is the machinery impaired at May 1, 2018? If it is impaired, what is the amount of the impairment loss? The machinery is not impaired - Impairment loss = $ O b. Assume that on May 1, 2018, Smooth estimates future cash flows relating to the use and disposal of the machinery to be $230,000. Is the machinery impaired at May 1, 2018? If it is impaired, what is the amount of the impairment loss? The machinery is impaired - Impairment loss = $ 83750

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...

Advance Math
1.2K views

solve non-homogeneous de y" + y = sec^2x by finding- the solution yh(x) to the equivalent...

Finance
1.2K views

Explain the Capital Asset Pricing Model (CAPM).

Biology
1.2K views

A plant is homozygous for the production of yellow seeds YY and homozygous for wrinkled...

Physics
1.2K views

3 2 The frequency changes by 10 as a sound source approaches a stationary observer...

Basic Math
1.2K views

Find the equation of the tangent line to the curve f(x) = 4 sec(x) -...

Statistics
1.2K views

After a touchdown the kicker of a football team makes a one point conversion 90...

Algebra
1.2K views

Graph each line 1 2x 3 y 2 x y 2 3 2y x 5...

Accounting
1.2K views

On January 1, 2017, Kingbird Co. leased a building to Blossom Inc. The relevant information...

Accounting
1.2K views

El total de la columna de crdito en un balance de prueba ajustado fue de...

Accounting
1.2K views

Hiram's Lakeside is a popular restaurant located on Lake Washington in Seattle. The restaurant's owner...

Accounting
1.2K views

Direct Materials Used, Cost of Goods Manufactured In March, Chilton Company purchased materials costing $25,000...