In 2009, Cilla Company Acquired Production Machinery at a Cost

question 63

Multiple Choice

In 2009, Cilla Company acquired production machinery at a cost of $470,000, which now has accumulated depreciation of $280,000. The sum of undiscounted future cash flows from use of the machinery is $120,000 and its fair value is $164,000. What amount should Cilla recognize as a loss on impairment?

• A) $70,000
• B) $96,000
• C) $26,000
• D) $0