ABC purchased a machine on Jan 1, 2016 for $94399 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 $5372 per year over its remaining life
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• 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:
2. On Dec 31, 2020 the impairment loss, if any, is (enter as a negative amount):
3. On Dec 31, 2020 the carrying value of the machine after any impairment loss is:

Answer rating: 100% (QA)

Purchase price 94399 Depreciation per annum 94399 10 years 9... View the full answer