Under What Circumstances Should a Company Record an Asset Impairment

Multiple Choice

Under what circumstances should a company record an asset impairment loss?

A) When residual value is greater than the repairs and maintenance expenses needed to keep up the asset.
B) When net book value is less than the residual value of the asset.
C) When accumulated depreciation equals the purchase cost of the asset.
D) When net book value is greater than expected future cash flows for the asset.