Illustration 1: Recoverable amount

Henry Co holds an item of machinery which it believes is impaired. The following infor relevant:

The fair value of the machinery is $10,000; the cost of selling is $500. The value in use of the machinery is estimated to be $9,000.

It is the company's intention to continue to use the asset for the remainder of its usefu

Required

Determine the recoverable amount of the machinery.