GEN Corporation has machinery that is used in its manufacturing process. The accountant has the following...

  

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GEN Corporation has machinery that is used in its manufacturing process. The accountant has the following information at December 31, 2020 to do the annual impairment test of the machinery. $37,375,000 16,330,000 Cost of the machinery Accumulated Depreciation Estimated total cash flows expected to be generated from the sales of the products manufactured with the machinery Fair value of the machinery 17,250,000 12,650,000 Instructions: A. Determine whether or not the machinery has suffered an impairment loss and calculate the impairment loss, if any. B. Prepare the required journal entry to record the impairment loss, if any. Accounts Title and Explanation Ref. Debit Credit Date B. Prepaře the required journal entry to record the impairment loss, if any. Accounts Title and Explanation Credit Date Ref. Debit C. Assuming that the estimated total cash flows expected to be generated from the sales of the products manufactured with the machinery is $21,850,000, determine whether or not the machinery has suffered an impairment loss and calculate the impairment loss, if any. GEN Corporation has machinery that is used in its manufacturing process. The accountant has the following information at December 31, 2020 to do the annual impairment test of the machinery. $37,375,000 16,330,000 Cost of the machinery Accumulated Depreciation Estimated total cash flows expected to be generated from the sales of the products manufactured with the machinery Fair value of the machinery 17,250,000 12,650,000 Instructions: A. Determine whether or not the machinery has suffered an impairment loss and calculate the impairment loss, if any. B. Prepare the required journal entry to record the impairment loss, if any. Accounts Title and Explanation Ref. Debit Credit Date B. Prepaře the required journal entry to record the impairment loss, if any. Accounts Title and Explanation Credit Date Ref. Debit C. Assuming that the estimated total cash flows expected to be generated from the sales of the products manufactured with the machinery is $21,850,000, determine whether or not the machinery has suffered an impairment loss and calculate the impairment loss, if any.

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Cost of the machinery 37375000 Accumulated depreciation 16330000 Value in use Estimated cashflows ex... View the full answer