Question: During December 2010, Toni Corp. determined that there had been a significant decrease in the market value of its equipment used in its roofing business.

During December 2010, Toni Corp. determined that there had been a significant decrease in the market value of its equipment used in its roofing business. At December 31, 2010, Toni compiled the information below.

Original cost of equipment $800,000 Accumulated depreciation 450,000 Expected net future cash inflows (undiscounted)

related to the continued use and eventual disposal of the equipment 300,000 Fair value of the equipment 250,000 What is the amount of the impairment loss that should be reported on Toni’s income statement prepared for the year ended December 31, 2010?

a. $ 50,000

b. $100,000

c. $150,000

d. $200,000

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