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ABC purchased a machine on Jan 1, 2016 for $83633 with an estimated useful life of 10 years and no salvage value ABC uses the
ABC purchased a machine on Jan 1, 2016 for $83633 with an estimated useful life of 10 years and no salvage value ABC uses the straight line depreciation method On December 31, 2020 technological changes suggest the machine may be impaired On December 31, 2020 the machine is expected to generate net cash flows of $5428 per year over its remaining life On December 31, 2020 the fair value of the machine is $24029.32 a. On Dec 31, 2020 the carrying value of the machine before any impairment loss is: 41818 b. On Dec 31, 2020 the impairment loss, if any, is (enter as a negative amount): 17788.68 C. On Dec 31, 2020 the carrying value of the machine after any impairment loss is: 24029.32 Assume: Purchase price of the land 14520.00 Real estate commission (%) of the purchase price 7.60 Demolition of old building on site 2071.06 Sale of scrap from old building 513.62 Construction cost of the new building 159312.00 Land survey costs 1263.24 Back taxes 1539.12 Architect fees 20232.62 The initial value of the building is: Answer: 182346.98
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