74) Which organization is responsible for promulgating U.S. GAAP? A) Financial A

Question

74) Which organization is responsible for promulgating U.S. GAAP? A) Financial Accounting Standards Board B) Public Company Accounting Oversight Board C) International Accounting Standards Board D) Securities Exchange Commission 75) In 2009, Cilla Company acquired production machinery at a cost of $410,000, which now has a accumulated depreciation of $240,000. The undiscounted cash flows from use of the machinery is $190,000 and its fair value is $145,000. What amount should Cilla recognize as a loss on impairment? A) $20,000 B) $35,000 C) $70,000 D)-0-

Explanation / Answer

Question no 74) : answer is A) Financial accounting standards board FASB QUESTION NO 75) : The answer is D i.e, 0 current written down value of machinery= cost- accumalated depriciation =410000-240000 =170000 impairment loss is a decrease in net carrying value, the acquisition cost minus depreciation, of an asset that is greater than the future undisclosed cash flow of the same asset. An impairment occurs when assets are sold or abandoned because the company no longer expects them to benefit long-run operations

here the carrying value of 1,70,000 is less than future cash flows 1,90,000 . so , there is no impairment loss   

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