The Following Information Was Taken from the Fixed Asset Records

question 39

Multiple Choice

The following information was taken from the fixed asset records of Bosco Ltd. as of December 31, 2010: $\begin{array}{llr}\text { Carrying value } & € 100,000 \\\text { Selling price } & € 85,000 \\\text { Costs of disposal } & € 3,000 \\\text { Expected future cash flows } & € 75,000 \\\text { Present value of expected future cash flows } & € 63,000\end{array}$
-What is the amount of impairment loss under U.S.GAAP?

• A)€37,000
• B)€18,000
• C)€15,000
• D)€25,000

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Definitions:

Journal Entry

A record in the accounting ledger that represents a transaction and its effect on accounts.

Fair Value

Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Ordinary Repairs

Regular maintenance or repairs to keep property and equipment functioning efficiently without extending its life or increasing its value substantially.