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A firm has a machine that it purchased for $140,000 that has accumulated depreciation of 35,000. The firm does an impairment test on the machine.

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A firm has a machine that it purchased for $140,000 that has accumulated depreciation of 35,000. The firm does an impairment test on the machine. The machine has expected net cash flows of $30,000 for each of the next three years. Do the impairment test for the machine and indicate what value should be recorded for the balance sheet after the impairment test for the machine. The discount rate is 6%

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