a. Orison Milling Company operates, on a contract basis, equipment that grinds and mixes grains used as animal feed. In September 2016, the book value of the equipment was $144,000. Because of declining processing fees, the company's chief financial officer became concerned that the asset might be impaired. An analysis of expected future cash flows from use of the asset resulted in an estimate of $143,000 of future cash flows. Further study led to the company's finding several almost identical processors that ranged in price from $99,000 to $101,000. The CFO decided that the asset was impaired and should be "written down" to $99,000. Do you agree?
b. What account would be debited and what account would be credited to record impairment?
What would be the amount of the impairment recorded?