Under US GAAP, If the Carrying Value of a Fixed Asset

question 44

Multiple Choice

Under U.S. GAAP, if the carrying value of a fixed asset was $50,000, the undiscounted expected future cash flows was $55,000, the discounted expected future cash flows was $51,000, and the selling price was $53,000, what is the amount of impairment loss?

• A) $5,000
• B) $3,000
• C) $1,000
• D) $0

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Definitions:

Cubic Feet

A unit of volume measurement in the imperial system, used to quantify the space an object occupies, often represented as ft³.

Sales Commission

A payment made to sales personnel, often calculated as a percentage of the sales they generate.

After-Tax Profits

Net income after accounting for all taxes, representing the company's profit remaining after tax expenses.