Problem 2 (30 points) A machine cost $900,000 and was purchased on April 1, 2022. Its...

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Problem 2 (30 points) A machine cost $900,000 and was purchased on April 1, 2022. Its estimated salvage value is $90,000 and its expected life is eight years. Instructions (1) Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing your calculations: (a) Straight-line (2022) (b) Double-declining balance (2024) (c) Sum-of-the-years'-digits (2023) (2) Which method would result in the smallest gain if sold in 2023 after depreciation was recorded for the year? (3) Use the calculations from (a) above and assume the company used the straight line method to calculate depreciation. In January of 2024, after depreciation was recorded for 2022 and 2023, the company became concerned that the asset was impaired. Determine if the asset is impaired and record the entry for the impairment if necessary. Net cash flows over the remaining life of the asset are expected to be $500,000. The fair market value of the asset is $400,000. Problem 2 (30 points) A machine cost $900,000 and was purchased on April 1, 2022. Its estimated salvage value is $90,000 and its expected life is eight years. Instructions (1) Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing your calculations: (a) Straight-line (2022) (b) Double-declining balance (2024) (c) Sum-of-the-years'-digits (2023) (2) Which method would result in the smallest gain if sold in 2023 after depreciation was recorded for the year? (3) Use the calculations from (a) above and assume the company used the straight line method to calculate depreciation. In January of 2024, after depreciation was recorded for 2022 and 2023, the company became concerned that the asset was impaired. Determine if the asset is impaired and record the entry for the impairment if necessary. Net cash flows over the remaining life of the asset are expected to be $500,000. The fair market value of the asset is $400,000.