3. A-line Company purchased a machine on July 1, 25x1 for $100,000. The estimated useful life is 10 years with no residual value. On December 31, 25x3 the company is preparing for an impairment test. The following information details the value of machine. Fair value, if sold $70,000 Cost to sell, if sold 5,000 Value-in-use 62,000 Required: 1. Test of impairment and prepare journal entry(s) for the impairment, if any. 2. Prepare a journal entry for depreciation expense at December 31, 25x4. 3. Assume the company transfers the machine to machine held for sale category on March 1, 25x5. Prepare a journal entry. Fair value of the machine on this date is $65,000 and cost to sell is 5,000. 4. Refer to question 3. If the company uses revaluation accounting for the machine and revalues the machine at the end of 25x3. Required: 1. Prepare journal entry for the revaluation at the end of 25x3. 2. Prepare a journal entry for depreciation expense at December 31, 25x4. Assume the company chooses to transfer the difference of depreciation expense in equity