kind corproation pruchased machinery with a cost of 1 0 0 0 0 0 0 and a salvage value of 4 0 0 0 0 the useful life of the asset is 8 years and the company uses straight line to depreciate all of its assets. at the beginning of the third year of the assets life, king decides to test it for impairment. At that time, it is estimated that the machinery will generat future cash flows of 7 0 0 0 0 0 the machinery has a fair value of 5 6 0 0 0 0 king should recognize an impairment loss of . . . 6 0 0 0 0 , 2 0 0 0 0 0 , 1 4 0 0 0 0 , or no impairment should be reported