ment E12-3 (similar to) Question Help lan Turner's Domino Manufacturing Company learned that one of its cutting machines is obsolete. Although the company will continue to use this machinery in the future, management believes that an impairment write-down is required. The following information relates to the cutting machine: (Cick the icon to view the information.) The firm estimates that the machine has a useful life of 10 years and it has used it for 4 years. It has no salvage value. Read the requirements. -dia Res Requirement a. Prepare the journal entry required to record the impairment loss. (Record debit ci Requirements sti Account Date of Impairment ica a. Prepare the journal entry required to record the impairment loss. b. Assuming that Turner's uses the straight-line method with no residual value, prepare the journal entry to record the revised depreciation expense for the first year immediately following the impairment. c. Assume that 2 years following the impairment write-down, the fair value of the asset falls to $733,000. The sum of the undiscounted future cash flows is $750,000. What is the carrying value of the asset at this time? Prepare any journal entry necessary to reflect the change in fair value. Choose from any list or enter any number in the input fields and then click Check Answer. Print Done Data Table Description Cutting Machine 3,210,000 Cost $ $ 1,285,000 Accumulated depreciation (up to the date of the impairment test) Total estimated future cash flows $ 1,237,000 Total discounted future cash flows $ Estimated fair value $ 1,078,000 1,044,000 3,000 Costs to sell $ Remaining useful life from the impairment date 6 years Print Done