Buch Corporation purchased Machine Z at the beginning of Year 1 at a cost of $100,000. The machine is used in the production of Product X. The machine is expected to have a useful life of 10 years and no residual value. The straightline method of depreciation is used. Adverse economic conditions develop in Year 3 that result in a significant decline in demand for Product X. At December 31, Year 3, the company develops the following estimates related to Machine Z:

At the end of Year 5, Buchs management determines that there has been a substantial improvement in economic conditions resulting in a strengthening of demand for Product Z. The following estimates related to Machine Z are developed at December 31, Year 5:

Required: Determine the carrying amounts for Machine Z to be reported on the balance sheet at the end of Years 15, and the amounts to be reported in the income statement related to Machine Z for Years 15.