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Holcomb Corpsssoration owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $200,000. The machinery
Holcomb Corpsssoration owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $200,000. The machinery has a fair value of $140,000. Holcomb should recognize a loss on impairment of $50,000. $60,000. $10,000. $-0-. Gates Co. purchased machinery on January 2, 2005, for $440,000. The straight-line method is used and useful life is estimated to be 10 years, with a $40,000 salvage value. At the beginning of 2011 Gates spent $96,000 to overhaul the machinery. After the overhaul, Gates estimated that the useful life would be extended 4 years (14 years total), and the salvage value would be $20,000. The depreciation expense for 2011 should be $40,000 $34,500. $37,000. $28,250
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