ation method Pctice 1115 Determining Whether a Tangible Asse

ation method Pctice 11-15 Determining Whether a Tangible Asset is Impaired Tecost adthe accumulated depreciation frape edep taesisoo oadso oare pe Management is concerned that the equipment has become impaired Management hired several independent appraisers who agreed that the cument value of the equipment is $500,000 Management also estimates that the equipment will generate cash inflows of $65,000 per year for the next 14 years is the equipment impaired Explain Salvage ValueL

Solution

Answer

Total undiscounted cash flows = $ 65,000 x 14 years = $ 910,000