Torge Company bought a machine for $68,000 cash. The estimated useful life was five years, and the estimated residual value was $6,000. Assume that the estimated useful life in productive units is 155.000. Units actually produced were 41,000 in year 1 and 46,500 in year 2 Required: 1. Determine the appropriate amounts to complete the following schedule. Depreciation Expense Book Value at the End of Method of Depreciation Straight-line Units-of-production Double-declining- balance $ Year1 12,400 16,400 27,200 $ Year 2 $ 12,400 1 8,600 16,320 Year 1 55,600 51,600 40,800 Year 2 43,200 49,400 27,200 When a company determines that estimated future cash flows from an asset are different from the book value of the asset, it records: Multiple Choice O an asset impairment loss, if the value of the cash flows exceeds the asset's book value. an asset impairment gain, if the asset's book value exceeds the value of the cash flows. an asset impairment gain, if the value of the cash flows exceeds the asset's book value O an asset impairment loss, if the asset's book value exceeds the value of the cash flows Which of the following statements is true when the straight-line method is used to compute depreciation? Multiple Choice o O Depreciation expense per period is the depreciable cost divided by the number of periods in the asset's useful life. o The carrying value of an asset is a constant amount during the asset's useful life. o Accumulated depreciation is a constant amount during the asset's estimated useful life. o O None of the answers are acceptable. How does an asset impairment loss impact a company's financial statements? Multiple Choice Raise expenses and lower both revenue and net income. Raise expenses and lower net income with no effect on any other items. Raise liabilities and lower shareholders' equity. Lower assets, shareholders' equity, and net income