问题详情

AcompanypreparesitsfinancialstatementsinaccordancewithU.S.GAAP(generallyacceptedaccountingprinciples).Itexpectedtobethesolesupplierforastate-wideschoolmilkprogramandhadproductionfacilitiesvaluedat$28.4million.Recentlyseveralothercompanieswerealsograntedmilk-supplycontractsthroughoutthestateandthecompanynowestimatesthatitwillonlybeabletogeneratecashflowsof$3millionperyearforthenext7yearswithitsfacilities.Thefirmhasacostofcapitalof10%.
Theimpairmentloss(in$-millions)ontheproductionfacilitieswillmostlikelybereportedinthecompany’sfinancialstatementsasa:
A.13.8reductioninoperatingcashflows..
B.13.8impairmentlossintheincomestatement
C.7.4reductioninthebalancesheetcarryingamount.