Question: 913 carrying amount of a machine is $ 40,000 (historical cost less depreciation). the machine. is expected to generate $ 10,000 net cash inflow. the

913 carrying amount of a machine is $ 40,000 (historical cost less depreciation). the machine. is expected to generate $ 10,000 net cash inflow. the net realisable value(or net selling price) of the machine on current date is $ 35,000. the enterprise's required earning rate is 10% per year. the enterprise can either use the machine to earn $ 10,000 for 5 years. this is equivalent of receiving present value of $ 10,000 for 5 years at discounting rate 10% on current date. the asset is currently overstated by

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