Question 30 of 30 > -/10 E Riverbed Inc. manufactures agricultural implements for commercial farms. As a result of recent technological advances, the market demand for one of its garden tractors has been steadily declining. The following assets are used in the manufacturing process: Accumulated Cost Depreciation Carrying Value Small Tools $13,000 $7,800 $5,200 Specialized Machinery 78,300 57,720 20,580 Standard Machinery 130,000 106,600 23,400 Riverbed Inc. is currently testing these assets for impairment. It determines that the small tools and specialized machinery have no other use and as a result no resale value. While the standard machinery could be sold today for $26,000, Riverbed Inc. plans to keep producing the garden tractors for three more years. It expects net cash flows from production to be $10,400 yearly and that it can sell the standard machinery for $18,200 at the end of year three. The fair value of these assets less the cost of disposal is estimated at $28,080. The current interest rate is 5%.