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Herbert Company owns equipment with a book value of $2,000,000. Because of technological changes, Herbert believes the machinery may be impaired. The machinery will have
Herbert Company owns equipment with a book value of $2,000,000. Because of technological changes, Herbert believes the machinery may be impaired. The machinery will have a remaining life of 6 years and will produce net cash flows of $300,000 each year. Using a discount rate of 12%, the present value of the cash flows is $ $1,233,422. Compute the amount of the impairment loss, if any. $_________________
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