Ponzi Printing Company determines that a printing machine used in its operations has suffered an impairment in value because of technological changes. An entry to record the impairment should include a credit to ________.
A) the machinery accumulated depreciation account
B) the loss on impairment account
C) the machinery account
D) the machinery depreciation expense account

Question

Quizplus · Accepted Answer

When recording an impairment, the asset's carrying amount is reduced directly by crediting the asset account, in this case, the machinery account.

Ponzi Printing Company Determines That a Printing Machine Used in Its