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Additional Problem 8 (Part Level Submission) On January 1, 2015, Blue Ltd. purchased equipment for $760,000. The equipment was assumed to have an 8-year useful life and no residual value, and was to be depreciated using the straight-line method. On January 1, 2017, Blue's management became concerned that the equipment may have become obsolete. Management calculated that the undiscounted future net cash flows from the equipment was $546,250, the discounted future net cash flows was $484,500, and the current fair value of the equipment (after costs to sell) was $475,000. (a1)