问题详情

AssumeU.S.GAAP(generallyacceptedaccountingprinciples)appliesunlessotherwisenoted.
Acompanyhasequipmentwithanoriginalcostof$850,000,accumulatedamortizationof$300,000and5yearsofestimatedremainingusefullife.Duetoachangeinmarketconditionsthecompanynowestimatesthattheequipmentwillonlygeneratecashflowsof$80,000peryearoveritsremainingusefullife.Thecompany’sincrementalborrowingrateis8percent.Whichofthefollowingstatementsconcerningimpairmentandfuturereturnonassets(ROA)ismostaccurate？Theassetis:
A.impairedandfutureROAincreases.
B.impairedandfutureROAdecreases.
C.notimpairedandfutureROAincreases.