Chapters 10 & 11 Multiple Choice Questions\ The Wild Halibut, Inc. bought a fish filet machine on January 1, 2017 for

$100,000

. The machine had\ an expected life of 20 years and was expected to have a salvage value of

$10,000

. On July 1,2027, the\ company reviewed the potential of the machine and determined that its undiscounted future net cash flows\ totaled

$50,000

and its fair value was

$35,000

. What should The Wild Halibut record as an impairment loss\ on July 1, 2027 assuming the straightline method is used?\ A.

$0

\ B.

$17,750

\ C.

$7,750

\ D.

$2,750

Chapters 10 \& 11 Multiple Choice Questions 1. The Wild Halibut, Inc. bought a fish filet machine on January 1, 2017 for $100,000. The machine had an expected life of 20 years and was expected to have a salvage value of $10,000. On July 1, 2027, the company reviewed the potential of the machine and determined that its undiscounted future net cash flows totaled $50,000 and its fair value was $35,000. What should The Wild Halibut record as an impairment loss on July 1, 2027 assuming the straightline method is used? A. $0 B. $17,750 C. $7,750 D. $2,750