In 2009,Cilla Company Acquired Production Machinery at a Cost of $410,000,which

question 69

Multiple Choice

In 2009,Cilla Company acquired production machinery at a cost of $410,000,which now has a accumulated depreciation of $240,000.The undiscounted cash flows from use of the machinery is $190,000 and it's fair value is $145,000.What amount should Cilla recognize as a loss on impairment?

• A)$20,000
• B)$35,000
• C)$70,000
• D)-0-

---

Definitions:

Critical Thinking

Using deductive reasoning to examine a problem or issue from a variety of different angles in order to arrive at the most appropriate conclusion and using that information in order to guide behaviors.

Problem Solving

The process of identifying a problem, devising alternative solutions, and selecting and implementing the most appropriate solution.

Time Management

The ability to plan and control how one spends hours in a day to effectively accomplish goals.

Planning

The process of making plans for something, which involves thinking and organizing the activities required to achieve a desired goal.