Based on the information below, what amount of impairment loss would be reported?

Based on the information below, what amount of impairment loss would be reported?


Estimated

Asset Fair value cash flows Book value

Equipment $ 25,000 $ 36,000 $ 30,000

Truck $ 34,000 $ 45,000 $ 42,000

Building $ 135,000 $ 138,000 $ 140,000


A) $5,000.

B) $23,000.

C) $13,000.

D) $18,000.


Answer: A


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