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EFlynn Company Purchased a Building for $400,000

Question 134

Multiple Choice

E.Flynn Company purchased a building for $400,000.The current book value of the building is $200,000 and the fair value is $180,000.The sum of future cash flows from the building is $160,000.According to GAAP,the amount of impairment loss that should be recognized is


A) $0.
B) $20,000.
C) $40,000.
D) $120,000.

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