On January 1, 2011, the Tofino Company acquired a pie-making machine for $50,000. The machine was estimated to have a useful life of 10 years with no residual value. Tofino uses the straight-line depreciation method. On January 1, 2018, due to technological changes in the bakery industry, Tofino believed that the asset might be impaired. Tofino estimates the machine will generate net cash flows of $6,740 and has a current fair value of $4,870. Required: 1. What is the book value of the machine on January 1, 2018? $ 2. Compute the loss related to the impairment. Feedback Check My Work 3. Prepare the journal entry necessary to record the impairment of the machine. 2018 Jan. 1 Loss from Impairment Equipment Record impairment