Reid Resch Is a Maker of Instruments for Measuring Weight

question 25

Essay

Reid Resch is a maker of instruments for measuring weight, temperature, pressure, and so on. Due to the increasing use of digital instruments, one of the company production lines based on analogue technology is potentially impaired. Management has produced the following information relating to this production line, which is considered to be a cash generating unit:
$$\begin{array} { | l | r | } \hline \text { Original cost } & \$ 4,940,000 \\\hline \text { Accumulated depreciation } & 1,800,000 \\\hline \text { Fair value } & 3,270,000 \\\hline \text { Costs to sell } & 48,000 \\\hline \text { Risk adjusted cost of capital } & 5 \% \\\hline & \\\hline \text { Incremental cash flows for } & \$ 200,000 \\\hline 2020 & 1,200,000 \\\hline 2021 & 1,200,000 \\\hline 2022 & 1,000,000 \\\hline 2023 & 0 \\\hline 2024 \text { and thereafter } & 5 \\\hline\end{array}$$ Required:
Determine whether the production line is impaired, and if so, the amount of the impairment.

Understand the criticisms and limitations of Freudian theory.

Explain Freud's influence on various fields beyond psychology.

Understand the concept of erogenous zones and their significance in Freud's psychosexual stages.

Describe the transition between different stages of psychosexual development.

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Definitions:

Economics Professor

An academic expert who teaches courses in economics and conducts research on economic theories, policies, and principles at a college or university.

CEO

Chief Executive Officer; the highest-ranking executive in a company or organization, responsible for making major corporate decisions and managing overall operations.

Infomercial

A television program that promotes a product in an informative and supposedly objective way but is actually a form of commercial advertisement.

Attractive Actor

An individual in the performing arts who is widely regarded as having physical appeal or good looks, often influencing their casting and public image.