Your Company Rents Computers to Local Businesses and Schools

question 154

Multiple Choice

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a decrease in estimated future cash flows.The fair value of the computers is estimated to be $125,000 because of their outdated technology.Your company should report an asset impairment loss of: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

---

Definitions:

Long-term Potentiation

A lasting increase in signal transmission between two neurons, thought to be a biological mechanism behind learning and memory.

Synaptic Transmission

The process of transferring neurotransmitters from one neuron to another across a synapse to continue or modify a neural signal.

Information Processing

The series of actions or steps taken in order to store, retrieve, and make sense of information.

Mnemonic Devices

Tools or strategies used to improve memory by associating easy-to-remember constructs with complex information.