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GEN Corporation has machinery that is used in its manufacturing process. The accountant has the following information at December 31, 2020 to do the annual
GEN Corporation has machinery that is used in its manufacturing process. The accountant has the following information at December 31, 2020 to do the annual impairment test of the machinery. + Cost of the machinery $37,375,000 Accumulated Depreciation 16,330,000 Estimated total cash flows expected to be generated from the sales of the products 17,250,000 manufactured with the machinery Fair value of the machinery 12,650,000 Instructions: A. Determine whether or not the machinery has suffered an impairment loss and calculate the impairment loss, if any. B. Prepare the required journal entry to record the impairment loss, if any. Date Accounts Title and Explanation Ref. Debit Credit C. Assuming that the estimated total cash flows expected to be generated from the sales of the products manufactured with the machinery is $21,850,000, determine whether or not the machinery has suffered an impairment loss and calculate the impairment loss, if any
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