8. Long Lived Assets
Asset Impairments
8. Long Lived Assets
Asset Impairments
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Practice this topic
- Multiple Choice
Sprinting Printers, Inc. purchased a patent on a high-tech laser printer for $750,000. The patent gives legal protection for twenty years, but Sprinting Printers believes that competitors will be able to mimic its capabilities in fifteen years. SP uses the straight-line method when amortizing the printer. After ten years, SP discovers that a competitor has created a more efficient holo-printer. At this point, SP determines that the estimated future cash flows of the printer are $200,000. The fair value of the patent is zero on the open market. The entry to record the discovery of the new holo-printer would include:
157views - Multiple ChoiceIn the context of asset impairments, how should the purchase of a new firewall device be classified?23views
- Multiple ChoiceWhich term refers to the safe disposal of mis assets at the end of their life cycle?24views
- Multiple ChoiceWhich of the following best describes an asset impairment?28views