Beaches Ltd. reviews its assets every fiscal year for potential asset impairments. In the current year Beaches realized through its impairment assessment that a specialized machine has a recoverable amount of $ 360,500. This asset carries a cost of $ 890,000 and up-to-date accumulated depreciation of $ 549,200. What amount would be reported as an impairment loss on Beaches Ltd. current income statement at year end?
A) $ 0
B) $ 340,800
C) $ 360,500
D) $ 19,700

Question

Quizplus · Accepted Answer

The Answer of Beaches Ltd. reviews its assets every fiscal year for potential asset impairments. In the current year Beaches realized through its impairment assessment that a specialized machine has a recoverable amount of $ 360,500. This asset carries a cost of $ 890,000 and up-to-date accumulated depreciation of $ 549,200. What amount would be reported as an impairment loss on Beaches Ltd. current income statement at year end?
A) $ 0
B) $ 340,800
C) $ 360,500
D) $ 19,700