On January 1, 2018, Deprimp Company purchased a machine for $250,000 on credit from a supplier in Germany. In order to bring it to Turkey $25,000 import tax is paid and transportation costed $5,000. Deprimp also paid an additional amount of $10,000 as the interest on this credit, which incurred up to the payment date.

When the machine is brought to the company installation costed $2,000, while $500 worth expenditures have incurred for test productions.

Deprimp predicts to use the machine for 5 years, and at the end of 5th year the machine will be sold for $5,000. However, it will cost the company $2,500 with present value to dismantle the machine.

Deprimp uses straight-line depreciation method for its fixed assets.

At the end of 2020, an impairment test is applied and Deprimp assumed that the machine would generate a total benefit of $100,000 at present value, during its remaining life. On the other hand, Company could also sell it in the market for a price of 110,000, if they spent $5,000 to furbish it and as selling expenses, as well.

Required: In this case, is there any impairment for the machine? If yes, please prepare the necessary records by presenting the calculations you made.