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Carolina Company has a large number of manufacturing machine for use in its normal course of business. The assets had an original cost of $2,200,000
Carolina Company has a large number of manufacturing machine for use in its normal course of business. The assets had an original cost of $2,200,000 and accumulated depreciation of $250,000. A change in business climate an innovation and other events in the past led Carolina to recognize that that the book value of the asset may not be recoverable. Management determined the cash flow from the machine and estimates that the future cash flow over the remaining useful life is $1,350,000 and that the fair value of the machine is $800,000.
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