When a Long-Term Operating Asset Is Impaired, the Firm Reduces

question 22

Multiple Choice

When a long-term operating asset is impaired, the firm reduces the asset's carrying value on the balance sheet and recognizes the decline in value ________.

• A) as a loss from continuing operations on the income statement
• B) as an extraordinary loss on the income statement
• C) as an unrealized loss in other comprehensive income
• D) as a realized loss in other comprehensive income