Wave Crest Hotels Is Located in Canada, but Manages an Extensive

question 113

Multiple Choice

Wave Crest Hotels is located in Canada, but manages an extensive network of boutique hotels in the United States.Wave Crest has significant receivables from 3 customers, $480,000 due from Stephanie Inn, $900,000 due from Warren House, and $760,000 due from Hallmark Hotels.Wave Crest has other receivables totaling $440,000.
Wave Crest determines that the Warren House receivable is impaired by $160,000 and the Hallmark Hotels receivable is impaired by $200,000.The receivable from the Stephanie Inn is not considered impaired.Wave Crest determines that a composite rate of 5% is appropriate to measure impairment on all other receivables.What is the total impairment of receivables for Wave Crest for 2011?

• A)$382,000
• B)$314,000
• C)$406,000
• D)$360,000

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Definitions:

Premises

Statements or propositions from which another is inferred or follows as a conclusion.

Syllogism

A deductive argument presented in the form of two supporting premises and a conclusion.

Deductive Argument

A claim that asserts its outcome is an inevitable result of the presented premises.

Inductive Argument

A reasoning that suggests its outcome likely results from the initial assertion.