ABC Corporation purchased machine A at the beginning of year1 at a cost of $100,000. The machine is used in the production of product B the machine is expected to have a useful life of 10 years and no residual value. The straight line method of depreciation is used. Adverse economic conditions develop in year 2 that results in a significant decline in demand for product B. At December 31. Year 2, the company develops the following estimates related to machine A: Expected future cash flows $75,000 / present value of expected future cash flow $55,000 / Selling price $77,000 / costs of disposal $7,000. At the end of the year 5, ABC's management determines that there has been substantial improvement in economic conditions resulting in a strengthening of demand for product B the following estimates related to machine A developed at December 31, year 5: Expected future cash flows $70,000 / present value of expected future cash flow $63,000 / selling price $50,000 / costs of disposal $7,000. Under IFRS, determine the carrying amounts for machine A to be reported on the financial position at the end of Year 2.Single choice.

(4 Points)

a- 63,000

b- 70,000

c-54,000

d- 75,000

e-50,000