Extract Corporation has machinery with a carrying amount of $680,000 at December 31, 2020. Additional information related to this machinery includes: 1 Undiscounted future net cash flows $ 630,000 Discounted future net cash flows (value in use) 555,000 Fair value 540,000 Remaining useful life Estimated residual value Depreciation method straight-line 9 years Extract Corporation follows ASPE and uses the Cost Recovery Impairment Model. 1.) Is the machinery impaired? Briefly explain why or why not. 2.) Regardless of your response in part 1, assume now that the machinery is impaired. (a) Prepare the journal entry to record impairment. (b) Calculate depreciation expense for the machinery for 2021