Impairment testing for property and equipment: On December 31, 2018, Avery Inc. has equipment with...
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Accounting
Impairment testing for property and equipment: On December 31, 2018, Avery Inc. has equipment with a book (acquisition cost less accumulated depreciation) value of $450,000. On that same date, Avery determines that the undiscounted future cash flows expected from this equipment are estimated to be $350,000 and the market value of the equipment is $100,000. What is the amount of write-down required, if any?
A. No writedown is required
B. ($350,000)
C. ($100,000)
D. ($250,000)
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