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0 Question 19 4 pts Solid Machine Inc. purchases a machine for $400,000 on 9/30/2013 that will be used to produce widgets. At the time
0 Question 19 4 pts Solid Machine Inc. purchases a machine for $400,000 on 9/30/2013 that will be used to produce widgets. At the time of the purchase they assume that the machine will last 10 years and have an ultimate salvage value of $20,000. They decide to use the double declining balance method to depreciate this asset. On 1/1/2015 they become aware of a better machine that is being used by their competitors that is capable of producing more widgets at a lower cost per widget. This innovation leads to a decrease in the average selling price of widgets, which leads Sold Machine to test their current machine for impairment. They determine that it is reasonable to expect $275,000 of future undiscounted cash flows from the machine, which equates to a present value of $225,000 as of 1/1/2015. Record the journal entry to record the impairment loss related to the current machine owned by Solid? (If you determine that no impairment test is needed, then you can just write "none needed")
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