Gates inc. a calendaryear firm, currenty uses a plant asset in operationis that originaly cose $110,000 and has a osefur me of eight years and a sio.000 residuav value. Gares ines the soraight. line deprechation methed. As an impsirment indicatior was present, Gates revewed the arset for impomment. Me january lof the cuntent year, which is the beginhing of the assets thard year of useful ife total remaining cagh innows atmbutable to the asset are estmated to be $120,000, while total cash outficawt in running and maintaining the mach ine are estimuted to be stis, 000, Based on quoted prices and the condition of the asset, Gstes estimates the thir value of the asset to be 140.000 . The cost to sell the asset is approkimately s5. oca Gates ptans to continue fo use. the assel in production, although at a much lower rame of usiliation. Required a. fiecord the ingairment loss on jamary 1 of the curtentyear b. Pecoed deprecition of the asset on Oecember at of the currentyear, Assume no change in residual value