Starburst Manufacturing Reports the Following Long-Term Assets for Its Lighting

question 27

Multiple Choice

Starburst Manufacturing reports the following long-term assets for its lighting division: $$\begin{array} { | l | r | r | } \hline & \text { Carrying value } & \text { Estimated fair value } \\\hline \text { Factory building (shared with other divisions) } & \$ 2,500,000 & \\\hline \text { Less: Accumulated depreciation } & ( 1,000,000) & \\\hline \text { Net book value } & \$ 1,500,000 & \$ 3,800,000 \\\hline \text { Land } & \$ 1,750,000 & \$ 3,500,000 \\\hline \text { Manufacturing equipment for lighting division } & \$ 525,000 & \\\hline \text { Less: Accumulated depreciation } & \$ 150,000 & \\\hline \text { Net book value } & \$ 375,000 &\$340,000 \\\hline \text { General factory equipment (used in several } & & \\\text { divisions) } & \$ 1,600,000 & \\\hline \text { Less: Accumulated depreciation } & \$ 900,000\\\hline \text { Net book value } & \$ 700,000 & \$ 650,000 \\\hline \text { Total net fixed assets } & \$ 4,325,000 & \\\hline\end{array}$$
As a result of new technology, Starburst believes that the lighting division's equipment in the manufacturing facility is nearly obsolete. They project the following future cash flows for the lighting division's operations:
Future period Cash-flow projection
Year 1 $50,000
Year 2 $35,000
Year 3 $20,000
Year 4 $12,000
Year 5 $6,000
For the purposes of impairment testing, which long-term assets will be used in the calculation of the loss?

• A) all fixed assets
• B) all fixed assets with the land excluded
• C) manufacturing equipment for lighting division and general factory equipment
• D) manufacturing equipment for lighting division

Identify the steps and components involved in behavior modification programs.

Comprehend the role and types of reinforcement schedules in shaping behavior.

Define and differentiate between key concepts such as conditioned stimulus, unconditioned stimulus, conditioned response, and unconditioned response.

Recognize the importance of specifying target behaviors in behavior modification.

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Definitions:

Original Curve

Refers to the initial state or baseline condition of a graphical representation before any changes or impacts are applied.

New Curve

In economic contexts, refers to a shifted demand or supply curve due to changes in factors affecting them, such as consumer preference or production costs.

Vitamin Tablets

Vitamin tablets are supplements containing vitamins that are taken orally to help meet nutritional needs and prevent deficiencies.

Frost

The formation of thin ice crystals on the ground or objects outside when the temperature falls below the freezing point of water.