Instructor / Section Day + Time: Student Name: NEQUIRED: On January 1, 20Y1, Martin Manufacturing paid cash for a new piece of manufacturing equipment. The machine cost $40,000 and had an estimated useful life of 5 years with a $5,000 salvage value. Martin uses the double-declining balance method of depreciation. During 20Y2, brand new technology was developed in Martin's industry. If Martin does not adjust, it will lose sales, as the new technology enables its competitors to produce a higher quality product using less time and materials. This development triggered an impairment analysis of Martin's existing machinery at the end of the year. 20Y2 depreciation had already been recorded by the time of the analysis. The manufacturing equipment purchased in 20Y1 now has an expected future cash flow of $12,000 and a fair market value of $2,000. Show how the above transactions would impact 20Y1-20Y2 cash flow, earnings, and balance sheet elements for Martin Manufacturing. Remember cumulative impacts for 20Y2. IMPACT ON CURRENT PERIOD CASH FLOW CHAPTER 10 HANDOUT DEPRECIATION & IMPAIRMENTS [11 POINTS] Net Impact on Current Period Cash Flow IMPACT ON CURRENT PERIOD EARNINGS Cash PPE, net of A/D Net Impact on Current Period Earnings CUMULATIVE IMPACT ON BALANCE SHEET ELEMENTS ASSETS: Cumulative Change in Assets LIABILITIES+EQUITY: 1 Cumulative Change in Liabilities + Equity 20Y1 20Y1 Hrithamar meer 20Y1 20Y2 2012 20Y2 Luke Delehaunty Joey Foreman Camden Foster Mason Fox Josh Frerker Blake Harmen Tyler Hende Justin Hig Brock Loga Br CHAPTER 10 HANDOUT | PAGE 1 Ha