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

---

Definitions:

Fixed Ratio Schedule

A type of reinforcement schedule in behavioral psychology where a response is reinforced only after a specified number of responses.

Variable Interval Schedule

A reward system where a response is given a reward after a random duration of time.

Fixed Interval Schedule

A schedule of reinforcement where rewards are given after a set period of time passes, regardless of the number of responses.

Reinforcement Schedules

In operant conditioning, the rule that is used to determine when and how frequently an action should be reinforced.