Innovative Inc. has a piece of equipment with a carrying amount of $187,000. Technology has changed, indicating that the machine may be impaired. A new machine with updated technology could be purchased for $358,000. A used machine of similar vintage is listed on-line for $168,000. The estimated discounted cash flows from continuing to use the asset are $156,000. The undiscounted cash flows from the use of the asset are $188,000. The estimated value if the company sold the asset less commission costs is $163,000. Required: 1. What is the recoverable amount

Innovative Inc. has a piece of equipment with a carrying amount of $187,000. Technology has changed, indicating that the machine may be impaired. A new machine with updated technology could be purchased for $358,000. A used machine of similar vintage is listed on-line for $168,000. The estimated discounted cash flows from continuing to use the asset are $156,000. The undiscounted cash flows from the use of the asset are $188,000. The estimated value if the company sold the asset less commission costs is $163,000. Required: 1. What is the recoverable amount

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 6CE

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