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Pharoah Corporation owns machinery with a book value of $2211000. It is estimated that the machinery will generate future cash flows of $2005000. The machinery

Pharoah Corporation owns machinery with a book value of $2211000. It is estimated that the machinery will generate future cash flows of $2005000. The machinery has a fair value of $1906000. The journal entry to record the impairment loss will
 

Select answer from the options below

a. include a $305000 credit to the asset account.

b. reduce income from continuing operations by $206000.

c. record an extraordinary loss of $99000.

d. increase the asset's Accumulated Depreciation account by $305000.

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