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    Calculating Loss of Impairment

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    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-

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    Solution Summary

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