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MartinezCorp., a small company that follows ASPE, owns machinery that cost $935,000and has accumulated depreciation of $360,000. The undiscounted future net cash flows from the
MartinezCorp., a small company that follows ASPE, owns machinery that cost $935,000and has accumulated depreciation of $360,000. The undiscounted future net cash flows from the use of the asset are expected to be $549,000. The equipment's fair value is $400,000. Using the cost recovery impairment model, prepare the journal entry, if any, to record the impairment loss.
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