In 2011, Zee Tee Inc

question 43

Multiple Choice

In 2011, Zee Tee Inc. acquired production machinery at a cost of $630,000, which now has a accumulated depreciation of $380,000. The sum of undiscounted future cash flows from use of the machinery is $260,000. and its fair value is $195,000. What amount should Zee Tee recognize as a loss on impairment?

• A) $325,000
• B) $55,000
• C) $30,000
• D) -0-

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