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.
参考答案：A
解析：
The asset is impaired because the carrying value is more than the undiscounted expected future cash flows. Discounted expected future cash flows are used to measure the amount of impairment, here 500000-380000=120000. The other statements are true. The impairment will be reported as an unusual or infrequent item in income from continuing operations. Writing down an asset decreases future depreciation expense and thus increases future income and leverage ratios. Assets are reduced, increasing future turnover ratios. The indicators of impairment given are correct.