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Calculating Loss of Impairment

Donald Corporation owns machinery with a book value of $670,000. It is estimated that the machinery will generate future cash flows of $560,000. The machinery has a fair value of $520,000. Donald should recognize a loss on impairment of

a. $150,000
b. $110,000
c. $40,000
d. $ -0-

Solution Summary

This solution calculates the loss that Donald should recognize for the impairment on the machine.