Bonita Inc. bought a machine on January 1 , 2 0 1 6 for $ 8 0

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Question:

Bonita Inc. bought a machine on January

1, 2016

for $

809000 .

The machine had an expected life of

20

years and was expected to have a salvage value of $

79000 .

On July

1, 2026,

the company reviewed the potential of the machine and determined that its future net cash flows totaled $

402000

and its fair value was $

314000 .

If the company does not plan to dispose of the machine, what should Bonita record as an impairment loss on July

1, 2026 ?

Related Book For answer-question

Management and Cost Accounting

ISBN: 978-1408093887

8th edition

Authors: Colin Drury

See More Books

Posted Date: Apr 09, 2024 03:12 AM

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Bonita Inc. bought a machine on January 1 , 2 0 1 6 for $ 8 0

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Expert Answer:

To determine the impairment loss we need to calculat... View the full answer

Management and Cost Accounting

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