Gamble Company, a successful efforts company, owns a working interest in an oil field in Alaska. The field has been producing for a number of years and is expected to be producing for another $10$ years. On January $1,2019,$ the net book value of the field wells, equipment, and facilities totals $$5,000\mathrm{.}000.$ Gamble defer mines that it should book an ARO in relation to the field. The undiscounted future cash flows to settle the ARO are estimated to be $$2,000,000.$ When discounted a a rate of $8\%$ for $10$ years, the present value is $$926,390.$ Later hat year, Gamble's chief accountant determines that, due to changes in the Late tax laws, the field should be assessed for impairment. Analysis gieds ine

following information: CHAPTER $11$ Impairment and Disposal of Long$-$Lived Assets $-365$

Later that year, Gamble's chief accountant determines that, due to changes in the

state tax laws, the field should be assessed for impairment. Analysis yields the

following information:

$\backslash$table$[[,$Undiscounted,Discounted$],[$Estimated future net cash flows before ARO,$$5,300,000,$$$3,000,000$