A machine with a carrying amount of $9,000 has a net selling price of $8,000.The replacement cost of this asset is $10,000 and the present value of future cash flows is $9,500.What is the deprival value of the machine?

Question

Quizplus · Accepted Answer

The deprival value of an asset is the higher of its net selling price, replacement cost, and present value of future cash flows. In this case, the present value of future cash flows is the highest at $9,500, so that is the deprival value. Therefore, the answer is D.

A Machine with a Carrying Amount of $9,000 Has a Net