Current Attempt in Progress Flint Inc. manufactures agricultural implements for commercial farms. As a result of recent technological advances, the market demand for one of its garden tractors has been steadily declining. The following assets are used in the manufacturing process: Accumulated Carrying Cost Depreciation Value Small Tools $13,750 $8,250 $5,500 Specialized Machinery 82,800 61,050 21,750 Standard Machinery 137,500 112,750 24,750 Flint Inc. is currently testing these assets for impairment. It determines that the small tools and specialized machinery have no other use and as a result no resale value. While the standard machinery could be sold today for $27,500, Flint Inc. plans to keep producing the garden tractors for three more years. It expects net cash flows from production to be $11,000 yearly and that it can sell the standard machinery for $19.250 at the end of year three. The fair value of these assets less the cost of disposal is estimated at $29,700. The current interest rate is 5%. (a)