A company has some bottling equipment which cost $8.5 million,has a net book value of $4.1 million,estimated future cash flows of $3.7 million,and a fair value of $3.1 million. How much is the asset impairment loss?

Question

Quizplus · Accepted Answer

The asset impairment loss is calculated as the difference between the carrying amount (net book value) and the fair value of the asset. Here, the net book value is $4.1 million and the fair value is $3.1 million. Therefore, the impairment loss is $4.1 million - $3.1 million = $1.0 million.

A Company Has Some Bottling Equipment Which Cost $8