Joe tests one of its machines for impairment. The fair market value of the machine is $450,000. The original cost of the machine is $800,000 and the related accumulated depreciation account has a balance of $300,000 at the time of the impairment test. The remaining useful life of the machine is estimated to be 7 years. What amount of impairment loss should Joe, Inc. recognize if it expects that this machine will generate cash flows of $70,000 annually? What amount of impairment loss should Joe, Inc. recognize if it expectsthat this machine will generate cash flows of $80,000 annually?

The answer is cash flow (70000) loss=50,000 cash flow 80,000

Please explain the answer in details. How do you get the loss? Thanks