a. Sum-of-the-years-digits b. Declining-balance c. Straight-line d. Cannot tell from information given 11. On January 1, 2017, A Company purchased a new machine for $40,200,000. The new machine has an estimated useful life of five years and the salvage value was estimated to be $200,000. Depreciation was computed on the straight line method. What amount should be shown in the company's balance sheet at December 31, 2018, net of accumulated depreciation, for this machine? a. $32,000,000 b. $18,200,000 C. $16,000,000 d. $24,000,000 12. Eli Corporation owns machinery with a book value of $550,000. It is estimated that the machinery will generate undiscounted future cash flows of $640,000. The machinery has a fair value of $630,000. Eli should recognize a loss on impairment of a. $10,000 b. $80,000. C. $0 d. $90,000 13. Alyssa Corporation owns machinery with a book value of $180,000. It is estimated that the machinery will generate undiscounted future cash flows of $150,000. The machinery has a fair value or market value of $100,000. Alyssa should recognize a loss on impairment of a. $50,000 b. $30,000 c. $80,000 d. $0 14. Adam, Inc. purchased equipment in 2016 at a cost of $600,000. Two years later it became apparent to Adam, Inc. that this equipment had suffered an impairment of value. In early 2018, the book value of the asset was $510,000 and it is estimated that the fair value or market value is now $440,000. The entry to record the impairment is a. No entry is necessary as a write-off violates the historical cost principle. b. Loss on impairment.. 160,000 Accumulated Depreciation-Equipment Accumulated Depreciation-Equipment. Reserve for Loss on Impairment of Equipment 160,000 70,000 90,000 c. Loss on Impairment of Equipment70,000 90,000 d. Accumulated depreciation