Based on the above information, what is the total amount of impairment loss that C-Stop should record at year-end?

C-Stop reports the following information at year-end:


Estimated

Book Value Cash Flows Fair Value

Building $ 500,000 $ 380,000 $ 360,000

Patent $ 35,000 $ 40,000 $ 38,000

Copyright $ 40,000 $ 38,000 $ 39,000

Machine $ 100,000 $ 120,000 $ 85,000


Based on the above information, what is the total amount of impairment loss that C-Stop should record at year-end?



A) $141,000.

B) $126,000.

C) $123,000.

D) $122,000.


Answer: A


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