(Mulitple Choice Question) Marshall Inc. owns an automobile costing $40,000. The automobile was purchased on January 1, 2016, and has is estimated to have a useful life of 8 years and a residual value...




(Mulitple Choice Question)

Marshall Inc. owns an automobile costing $40,000. The automobile was purchased on January 1, 2016, and has is estimated to have a useful life of 8 years and a residual value of $3000. On January 1, 2020 it is discovered that the automobile has a market value of $15,000. Marshall Inc. should therefore:



















1. Take no action, as no transaction is required in this situation
















2. None of the answers are correct
















3. Record an Impairment loss of $8125












4. Record an impairment loss of $3500
















5. Record an Impairment loss of $6500









Jun 09, 2022
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