The Simon Company Acquired a Long-Lived Asset Three Years Ago $\quad$

question 5

Multiple Choice

The Simon Company acquired a long-lived asset three years ago at a cost of $125,000.Two years later the asset sustained impairment in value.At the time of the impairment the fair value of the asset was $25,000 and the carrying value was $50,000.The entry to record the impairment would be

• A) DR Retained earnings\(\quad\)25,000
• CR Accumulated depreciation\(\quad\)25,000
• B) DR Impairment loss\(\quad\)25,000
• CR Long-lived asset\(\quad\)25,000
• C) DR Retained earnings\(\quad\)25,000
• CR Extraordinary loss\(\quad\)25,000
• D) DR Extraordinary loss\(\quad\)25,000
• CR Long-lived asset\(\quad\)25,000

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Definitions:

Target Market

Group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences.

Market Segmentation

The process of dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.

Organization Marketing

The practice of marketing the brand, culture, and mission of an organization to attract stakeholders like employees, investors, and partners, beyond just promoting products or services.

Consumer Behavior

The study of how individuals or groups make decisions to purchase, use, and dispose of goods and services, influenced by psychological, social, and economic factors.