Your Company Rents Out Computers to Local Businesses and Schools

question 59

Multiple Choice

Your company rents out computers to local businesses and schools.You have 1,000 computers with a net book value of $160,000.As a result of changing technology,your computers are more difficult to rent so you must severely reduce your rental price,which causes a decrease in estimated future cash flows.The fair value of the computers is estimated to be $125,000 because of their outdated technology.Your company should report an asset impairment loss of:

• A)$160,000.
• B)$125,000.
• C)$35,000.
• D)$0

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Definitions:

Craving

A powerful and intense desire or longing for something, often related to addiction or emotional needs.

Cocaine Addict

Refers to an individual who is dependent on the psychoactive drug cocaine, characterized by the compulsion to use the substance despite harmful consequences.

Anxiety

A feeling of worry, nervousness, or unease, often about an imminent event or something with an uncertain outcome.

Barbiturates

A class of drugs that act as central nervous system depressants, historically used for anxiety, insomnia, and seizure disorders, but now less common due to risk of dependency.