A company has an asset with the following characteristics: Net book value of $ 500000 (original cost of $ 1300000 less accumulated depreciation of $ 800000). Undiscounted expected future cash flows of $ 470000 present value of expected future cash flows of $ 380000. Which of the following statements about the accounting treatment of this asset is least accurate()
A. The asset is deemed to be "impaired," because the present value of expected future cash flows is less than the carrying value.
B. The future impact of an impairment recognition is to increase net income, asset turnover ratios, and leverage ratios.
C. If an impairment is recognized, the company will report a $120000 write-off in income from continuing operations.
