Brickell Corporation purchased a new machinery at the beginning of 2022 at a cost of $400,000. The machinery is expected to have a useful life of 20 years and no residual value. The straight-line method of depreciation is used. Adverse economic conditions develop in 2024 that result in a significant decline in demand for Brickells products. At December 31, 2024 the company develops the following estimates related to the machinery: Expected future cash flows: $300,000 PV of expected future cash flows: $220,000 Selling price: $280,000 Cost of disposal: $40,000 At the end of 2026, Brickells management determines that there has been a substantial improvement in economic outlook, resulting in a strengthening of demand for Brickells products. The following estimates related to the machinery are developed at December 31, 2026: Expected future cash flows: $280,000 PV of expected future cash flows: $240,000 Selling price: $260,000 Cost of disposal: $30,000 Required: 1. Determine the carrying amounts for the machinery reported on the balance sheet at the end of years 2022-2026 and the amounts to be reported in the income statement related to the machinery for years 2022-2026.