Problem $11-9$ Determining asset impairment $($LO $11-5)$

Four years ago Omega Technology, Inc., acquired a machine to use in its computer chip manufacturing operations at a cost of $$35,000,000.$ The firm expected the machine to have a seven$-$year useful life and a zero salvage value. The company has been using straight$-$line depreciation for the asset. Due to the rapid rate of technological change in the industry, at the end of Year $4,$ Omega estimates that the machine is capable of generating $($undiscounted$)$ future cash flows of $$11,000,000.$ Based on the quoted market prices of similar assets, Omega estimates the machine to have a fair value of $$9,500,000.$

$$

Required:

What is the machine$$s book value at the end of Year $4?$

Should Omega recognize an impairment of this asset? If so$,$ what amount of the impairment loss should be recognized?

At the end of Year $4,$ at what amount should the machine appear in Omega$$s balance sheet?

$$