(Solved): Which of the following statements about asset impairment is true? Ch. 8 slides. A. : The impairment ...

Which of the following statements about asset impairment is true? Ch. 8 slides. A. : The impairment journal entry debits Impairment Loss ( , ) and credits Accumulated Depreciation ( , ). B. If a company has an asset with a net book value of

million and estimates the future cash flows to be received over the asset's remaining life to be

million, no impairment has occurred. C. The last step in determining whether there is an asset impairment is to evaluate whether there are economic indicators of impairment. For example, was there a significant decrease in the price of the asset or a negative change in the business environment. D. The last step in impairment testing is to compute and record the impairment loss. If a company has an asset with a net book value of

million and fair market value of

million, then the company will credit Impairment Loss ( , ) for

million. E. If a company impairs a long-lived asset and market conditions subsequently improve, the company is then allowed to increase the value of the asset back up to its original value.