Answered

Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Joyson Company owns equipment that cost $900,000 and has accumulated depreciation of $420,000. The expected future net cash flows from the use of the asset are expected to be $500,000. The fair value of the equipment is $400,000. What is the amount of the impairment loss

Sagot :

The impairment loss of the equipment is $-80,000.

The impairment loss of an asset is determined by subtracting the asset's carrying value from the fair value of the equipment.

Impairment loss = Fair value of the asset - carrying value of the asset.

The carrying value of an asset is the cost of an asset less the accumulated depreciation.

Carrying value = Cost of the asset - accumulated deprecation

$900,000 - $420,000 = $480,000

Impairment loss = $400,000 - $480,000 = $-80,000

To learn more, please check: https://brainly.com/question/13887782

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.