Devo Co. has an indefinite-life intangible asset with a carrying value of $800,000. The undiscounted future cash flows expected to be realized from that asset total $828,000; the discounted cash flows are $578,000; and the fair value of the asset has been determined to be $647,000. What is the amount of the impairment loss to be recorded, if any?
A) $222,000
B) $153,000
C) $28,000
D) -0-

Question

Quizplus · Accepted Answer

The impairment loss is calculated as the difference between the carrying value and the fair value of the asset. The carrying value is $800,000, and the fair value is $647,000. Therefore, the impairment loss is $800,000 - $647,000 = $153,000.

Devo Co Has an Indefinite-Life Intangible Asset with a Carrying Value