IMPAIRMENT Brown Industries had two machines that it believes may be impaired. Information on the machines is shown below.

Book Value Estimated Future Cash Flows Fair Value Machine 1 $42,000 $50,000 $40,000 Machine 2 55,000 40,000 32,000 Required:
For each machine, determine if the machine is impaired. If so, calculate the amount of the impairment loss.
Cornerstone Exercise