Under U.S.GAAP,if the carrying value was $50,000,the undiscounted expected future cash flows was $55,000,the discounted expected future cash flows was $51,000 and the selling price was $53,000,what is the amount of Impairment Loss?
A)$5,000
B)$3,000
C)$1,000
D)$0

Question

Quizplus · Accepted Answer

Under U.S. GAAP, an impairment loss is recognized when the carrying amount of an asset exceeds its undiscounted expected future cash flows. Since the undiscounted expected future cash flows ($55,000) are greater than the carrying value ($50,000), there is no impairment loss.

Under USGAAP,if the Carrying Value Was $50,000,the Undiscounted Expected Future Cash