what is the amount of the impairment loss that should be reported on toni rsquo s in 603600
During December 2006, Toni Corp. determined that there had been a significant decrease in the market value of its equipment used in its roofing business. At December 31, 2006, Toni compiled the information below.
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|
Original cost of equipment |
$800,000 |
|
Accumulated depreciation |
450,000 |
|
Expected net future cash inflows (undiscounted) related to the continued use and eventual disposal of the equipment |
300,000 |
|
Fair value of the equipment |
250,000 |
What is the amount of the impairment loss that should be reported on Toni’s income statement prepared for the year ended December 31, 2006?
- $ 50,000
- $100,000
- $150,000
- $200,000