Thoman Inc. owns equipment for which it paid $45 million. At the end of 2018...
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Thoman Inc. owns equipment for which it paid $45 million. At the end of 2018 it had accumulated depreciation on the equipment of $13.5 million. Due to adverse economic conditions. Thomans management determined that it should assess whether an impairment should be recognized for the equipment. The estimated undiscounted future cash flows to be provided by the equipment total $30 million and the equipments fair value at that point is $20 million. Under these circumstances, Thoman would record
no impairment loss on the equipment would record
a $1.5 million impairment loss on the equipment would record
an $11.5 million impairment loss on the equipment
none of these is correct
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