Anali Corporation Has Determined That Its Drilling Equipment Is Impaired

Multiple Choice

Anali Corporation has determined that its drilling equipment is impaired. The cost of the equipment is $210,000. Accumulated depreciation recorded to date is $140,000. Anali has determined, that based on market data, the recoverable amount will be $45,000. Determine the amount of the impairment loss that Anali will be required to record.

A) $25,000
B) $70,000
C) $45,000
D) $210,000