Wilson Inc

question 112

Multiple Choice

Wilson Inc. owns equipment for which it paid $70 million. At the end of 2013, it had accumulated depreciation on the equipment of $12 million. Due to adverse economic conditions, Wilson's management determined that it should assess whether an impairment loss should be recognized for the equipment. The estimated undiscounted future cash flows to be provided by the equipment total $60 million, and the equipment's fair value at that point is $50 million. Under these circumstances, Wilson:

• A)Would record no impairment loss on the equipment.
• B)Would record an $8 million impairment loss on the equipment.
• C)Would record a $20 million impairment loss on the equipment.
• D)None of the above is correct.

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Definitions:

Thigh

The part of the lower limb between the hip and the knee.

Intercostal Veins

Veins located between the ribs that drain blood from the chest wall and muscles back to the heart.

Intercostal Muscles

Muscles located between the ribs that assist with the breathing process by expanding and contracting the chest cavity.

Azygous Vein

A vein running up the right side of the thoracic vertebral column that drains blood from the chest wall and upper limbs back to the heart.