When Evaluating Whether an Asset Has Been Impaired, the Carrying

question 5

Multiple Choice

When evaluating whether an asset has been impaired, the carrying amount of the asset must be compared to its recoverable amount. Recoverable amount is the higher of:

• A) initial cost: and, fair value.
• B) original cost: and, net present value.
• C) value in use: and, original cost.
• D) fair value less costs to sell: and, value in use.

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Definitions:

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