alue) 2,500,0 1,000,000 of that purchase. At 00 (including 1,250,000 2018 for $8,000,000, and a. $32,000,000 b. $18,200,000 $16,000,000 $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 $840,000. 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 2017 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 2019, 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 c. Loss on Impairment of Equipment. d. Accumulated depreciation. 160,000 Accumulated Depreciation-Equipment Accumulated Depreciation-Equipment.. Reserve for Loss on Impairment of Equipment 160,000 70,000 70,000 90,000 90,000 15. Which of the following is not true of intangible assets? a. They Lack physical existence. b. They are not financial instruments. c. They are long-lived and amortize. They are not shown on the balance sheet 16. Which of the following is an intangible asset per U.S.GAAP