Your company rents computers to local businesses and schools. You have 4,600 computers with a...
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Accounting
Your company rents computers to local businesses and schools. You have 4,600 computers with a book value of $148,500. As a result of changing technology, your computers are more difficult to rent so you must drastically reduce your rental price, which causes a decrease in estimated future cash flows. The fair value of the computers is estimated to be $144,500 because of their outdated technology. Your company should report an asset impairment loss of:
Multiple Choice
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$144,500.
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$148,500.
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$4,000.
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$0.
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