C is corrent. The expected cash flows from Ball’s machinery are computed in the following way:| Expected future cash inflows from use of the machinery | $350,000 | | Expected proceeds from disposal of the machinery | 50,000 | | Less the expected cash outflows from use of the machinery | (75,000) | | Expected cash flows for determining impairment loss | $325,000 |
A is incorrect. The expected cash flows from Ball’s machinery are computed in the following way:| Expected future cash inflows from use of the machinery | $350,000 | | Expected proceeds from disposal of the machinery | 50,000 | | Less the expected cash outflows from use of the machinery | (75,000) | | Expected cash flows for determining impairment loss | $325,000 |
B is incorrect. The expected cash flows from Ball’s machinery are computed in the following way:| Expected future cash inflows from use of the machinery | $350,000 | | Expected proceeds from disposal of the machinery | 50,000 | | Less the expected cash outflows from use of the machinery | (75,000) | | Expected cash flows for determining impairment loss | $325,000 |
D is incorrect. The expected cash flows from Ball’s machinery are computed in the following way:| Expected future cash inflows from use of the machinery | $350,000 | | Expected proceeds from disposal of the machinery | 50,000 | | Less the expected cash outflows from use of the machinery | (75,000) | | Expected cash flows for determining impairment loss | $325,000 |
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