On September 19, 2020, Sheffield Corp. purchased machinery for $475000. Salvage value was estimated to be $25000. The machinery will be depreciated over eight years using the sum-of-the-years'-digits method. If depreciation is computed on the basis of the nearest full month, Sheffield should record depreciation expense for 2021 on this machinery of

$102257.

$97111.

$96875.

$75000.

Sheridan Company has equipment with a carrying amount of $2570000. The expected future net cash flows from the equipment are $2610000, and its fair value is $2047000. The equipment is expected to be used in operations in the future. What amount (if any) should Sheridan report as an impairment to its equipment?

$563000.

$523000.

$40000.

No impairment should be reported.