Amount of the impairment loss problem

Assignment Help Accounting Basics

Reference no: EM13147468

Five years ago, Goodman, Inc., purchased a patent for $110,000. Lower demand for the product produced under this patent necessitates that an impairment test be made. On the date of purchase, the patent had an estimated useful life of eleven years. It currently has a remaining useful life of four years. The current fair value of the patent is $43,000. Company management estimates that the patent will generate future cash flows of $12,000 per year for the next four years.

The amount of the impairment loss to be recognized is

a. $50,000.

b. $60,000.

c. $12,000.

d. $17,000.

Reference no: EM13147468

Questions Cloud

Calculate the molar mass of a nonelectrolyte : Calculate the molar mass of a nonelectrolyte that lowers the freezing point of 25.00 g of water to 3.9°C when 4.27 g of the substance is dissolved in the water.

What the gel would look like with all three digest : You have a circular plasmid containing 9kb of DNA, and you wish to map its EcoR1 and BamHI sites. When you digest the plasmid with EcoRI and run the resulting DNA on a gel.

John, lionel, and evelyn harrymore, siblings and actors : John, Lionel, and Evelyn Harrymore, siblings and actors, decide to retire after years on the road. They remember a town in Illinois they were familiar with from their travels. From the internet, they learn of a farm a few miles outside of town that s..

How to conclude that the new ball has improved game : Averaging 204 pins with a standard deviation of 24.9, can one conclude at a level of significance of .01 that the new ball has improved his game?

Amount of the impairment loss problem : On the date of purchase, the patent had an estimated useful life of eleven years. It currently has a remaining useful life of four years. The current fair value of the patent is $43,000. Company management estimates that the patent will generate f..

What are the final dimensions of the bar while it is being : 20 pound test fishing line has a diameter of 0.017". A fish pulls with a force of 12 poundswhich does not induce yielding in the line. The elastic modulus of the line is E = 450 ksi.

What mass of ethanol should be dissolved : What mass of ethanol, CH3CH2OH, should be dissolved in 450. g of water to obtain a freezing point of 4.5°C?

Determining weighted-average cost of capital : Calculate Golden Gate Construction Associates' weighted-average cost of capital.

Find onfidence interval for true mean heart rate of people : Find a 99% confidence interval for the true mean heart rate of all people with this untreated condition. Show your calculations.

User Account

All Pages