Flynn Company Purchased a Building for $400,000

question 224

Multiple Choice

Flynn Company purchased a building for $400,000.At the end of the current year,the book value of the building is $220,000 and its fair value is $180,000.Assuming the building is rented to a tenant,the sum of future cash flows from the rental of the building is expected to be $160,000.What is the amount of impairment loss?

• A) $0
• B) $20,000
• C) $40,000
• D) $120,000

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