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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Definitions:

Utilitarianism

A theory in ethics that prescribes actions that maximize happiness and well-being for the majority of a population.

Responsibility

The duty or obligation to perform or complete a task, often with the implication of accountability for the outcome.

Justice

The concept of fair and equal treatment for all, as well as the administration of law.

Ethical Dilemma

A situation where a person must choose between two or more conflicting ethical principles or values.