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We own a machine the Cotton Socks 5000 that cost us $450,000. The Accumulated Depreciation is $186,000. We estimate that if we sold the machine
We own a machine the "Cotton Socks 5000" that cost us $450,000. The Accumulated Depreciation is $186,000. We estimate that if we sold the machine today we would get just $212,000 for it. Its residual value is $35,000. We have also calculated the discounted future cash flows the company expects to derive from using the asset, gives its value as $290,000. By what amount is the "Cotton Socks 5000" machine impaired? Select one: O a. $35,000 O b. $26,000 C. The "Cotton Socks 5000" machine is not impaired. O d. $78,000 O e. $52,000
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