Maple Inchas the Following Information Regarding Its Assets: What Amount of of Loss

question 118

Multiple Choice

Maple Inc.has the following information regarding its assets: What amount of loss should be recorded due to asset impairments?
$$\begin{array} { | l | r | r | r | } \hline & \text { Book Value } & \begin{array} { r } \text { Estimated Cash } \\\text { Flows }\end{array} & \text { Fair Value } \\\hline \text { Equipment } & \$ 35,000 & \$ 30,000 & \$ 28,000 \\\hline \text { Building } & \$ 68,000 & \$ 70,000 & \$ 65,000 \\\hline \text { Patent } & \$ 30,000 & \$ 34,000 & \$ 32,000 \\\hline\end{array}$$

• A)$10,000.
• B)$9,000.
• C)$8,000.
• D)$7,000.

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Definitions:

Two-Tail

A term used in statistics referring to the two-tailed test of significance that checks for the possibility of positive or negative differences.

Observations

The act of noting and recording something with instruments or the naked eye as part of a scientific or empirical study.

Untreated Population

A group in a study or an experiment that does not receive the treatment or intervention being tested.

Significance Level

The threshold in hypothesis testing that determines the probability of rejecting the null hypothesis when it is actually true, often denoted by alpha.