Technique Co

question 80

Multiple Choice

Technique Co.has equipment with a carrying amount of $800,000.The equipment's fair value less costs to sell is $780,000, and its value-in-use is $815,000.The equipment is expected to be used in operations in the future.What amount (if any) should Technique report as an impairment to its equipment?

• A)No impairment should be reported.
• B)$20,000
• C)$15,000
• D)$35,000

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Definitions:

Output Level

The quantity of goods or services produced by a firm, industry, or economy in a given time period.

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit.

Marginal Cost

The cost of producing one additional unit of a product or service.

Average Variable Cost

Average Variable Cost is the variable cost per unit of output, calculated by dividing total variable costs by total output, illustrating how variable costs change with output levels.