Question: ABC purchased a machine on Jan 1, 2016 for $83633 with an estimated useful life of 10 years and no salvage value ABC uses the

  • ABC purchased a machine on Jan 1, 2016 for $83633 with an estimated useful life of 10 years and no salvage value
  • ABC uses the straight line depreciation method
  • On December 31, 2020 technological changes suggest the machine may be impaired
  • On December 31, 2020 the machine is expected to generate net cash flows of $5428 per year over its remaining life
  • On December 31, 2020 the fair value of the machine is $24029.32
  1. On Dec 31, 2020 the carrying value of the machine before any impairment loss is: Answer

  2. On Dec 31, 2020 the impairment loss, if any, is (enter as a negative amount): Answer

  3. On Dec 31, 2020 the carrying value of the machine after any impairment loss is: Answer

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