What is the amount of the impairment

Reference no: EM13147375

Springfield Corp. has equipment that, due to changes in its use, is being reviewed for possible impairment. The asset's carrying amount is $800,000 reflecting its $1,000,000 original cost, less $200,000 in accumulated depreciation. The expected, undiscounted, net cash flows from the use of the asset and the eventual disposition are determined to be $760,000, and it has a current market value of $710,000. What is the amount of the impairment, if any, that should be recorded by Springfield Corp?

A. $ 0

B. $ 40,000

C. $ 90,000

D. $240,000

E. $300,000

F. $ 50,000

Reference no: EM13147375

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