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34 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20R 22 23 24 2 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 o 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 7 72 73 2 On January 2, Year 1, Reed Co. purchased a machine for $800,000 and established an annual depreciation charge of $100,000 over an 8-year life. At the beginning of Year 4, after issuing its Year 3 financial statements, Reed concluded that $250,000 was reasonable estimate of the sum of the undiscounted net cash inflows expected to be recovered through use of the machine fo the period January 1, Yean4 through December 31, Year 8. The machine's fair value was $200,000 at the beginning of Year 4. In Reed's December 31, Year 4, balance sheet, the machine should be reported at a carrying amount of $160,000 $400,000 O $100,000 es

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