Your Company Rents Out Computers to Local Businesses and Schools

question 59

Multiple Choice

Your company rents out computers to local businesses and schools.You have 1,000 computers with a net book value of $160,000.As a result of changing technology,your computers are more difficult to rent so you must severely reduce your rental price,which causes a decrease in estimated future cash flows.The fair value of the computers is estimated to be $125,000 because of their outdated technology.Your company should report an asset impairment loss of:

• A)$160,000.
• B)$125,000.
• C)$35,000.
• D)$0

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Definitions:

International Aspects

Pertaining to factors or considerations that span across national borders, affecting global interactions, including trade, policy, and cultural exchanges.

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The interconnected economies of the world's nations, including their trade, financial transactions, and market influences on a global scale.

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