In 2011, Yondoor Inc. Company acquired production machinery which now has a book value of $750,000. The sum of undiscounted future cash flows from use of the machinery is $370,000. and it's fair value is $305,000. Yondoor has determined that an impairment loss has occurred. What is the carrying value of the machinery after the journal entry to record the impairment loss has been recorded?
A) $445,000
B) $380,000
C) $370,000
D) $305,000
Correct Answer:
Verified
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