A Company Would Need to Record an Impairment Loss for Its

Multiple Choice

A company would need to record an impairment loss for its equipment when:

A) the original cost of the equipment exceeds its fair value and is deemed not recoverable.
B) management determines that the equipment will no longer be used.
C) the carrying amount of the equipment exceeds its fair value and is deemed not recoverable.
D) the cash flows from the equipment are less than its fair value.