On January 4, 20X1, Ludwig Inc. purchased a machine for $58,000. The equipment's residual value was estimated to be $4,000 at the end of its six-year economic life. On August 31, 20X3, Ludwig put up the machine for sale and actively tried to find a buyer. At its year end December 31, 20X3. the machine has not been sold. Ludwig estimated that the undiscounted future cash flows of the machine is $38,000, and the machine's fair value less cost to sell is $33, 000. How much is the sum of 20X3 depreciation expense and impairment loss, if any?

On January 4, 20X1, Ludwig Inc. purchased a machine for $58,000. The equipment's residual value was estimated to be $4,000 at the end of its six-year economic life. On August 31, 20X3, Ludwig put up the machine for sale and actively tried to find a buyer. At its year end December 31, 20X3. the machine has not been sold. Ludwig estimated that the undiscounted future cash flows of the machine is $38,000, and the machine's fair value less cost to sell is $33, 000. How much is the sum of 20X3 depreciation expense and impairment loss, if any?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7EA: Alfredo Company purchased a new 3-D printer for $900,000. Although this printer is expected to last...

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