On December 31, 2012, CA Inc

question 55

Multiple Choice

On December 31, 2012, CA Inc. had a machine with an original cost of $20,000 and accumulated depreciation of $5,000. An impairment test on that date indicated that the machine had a value in use of $12,000 and a fair value of $10,000 (no disposal costs) . What impairment loss is recorded for fiscal 2012?

• A)$3,000
• B)$5,000
• C)$8,000
• D)$10,000

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Definitions:

Carbon Atoms

The chemical element with atomic number 6; it is the basic building block of organic molecules and can form four covalent bonds.

Hydrogen Atoms

The simplest atoms consisting of one proton and one electron, fundamental in the composition of water and organic compounds.

Haloalkane

An organic compound in which one or more halogen atoms (fluorine, chlorine, bromine, or iodine) are bonded to the carbon atoms of an alkane.

Alkane Name

A term used to specify the structured naming system for alkanes, characterized by the suffix "-ane" and a prefix denoting the number of carbon atoms.