If an Asset's 'Value in Use' Exceeds Its Market Value

question 19

Multiple Choice

If an asset's 'value in use' exceeds its market value then:

• A) An entity should adjust the current carrying amount of the asset to book value.
• B) It would be expected that the entity would dispose of the asset immediately.
• C) An impairment loss will need to be recorded.
• D) It would be expected that the entity would retain the asset.

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Definitions:

FTA-ABS

A blood test used to detect the presence of antibodies to Treponema pallidum, the bacterium that causes syphilis.

Slim Muscular Tube

A description typically referring to the esophagus, which is a long, thin muscular tube connecting the throat to the stomach.

Epididymis

A long, coiled tube that stores and carries sperm from the testicles, allowing it to mature.

Prostate

The prostate is a gland of the male reproductive system that produces some of the fluid in semen.