Sheffield Corp. bought a machine on January 1, 2011 for $814000. The machine had an expected life of 20 years and was expected to have a salvage value of $82000. On July 1, 2021, the company reviewed the potential of the machine and determined that its future net cash flows totaled $408000 and its fair value was $273000. If the company does not plan to dispose of it, what should Sheffield record as an impairment loss on July 1, 2021

$156,700

Explanation:

Depreciation expense = [Cost-salvage value] /useful life

Depreciation expense = [814000 - 82000]/20

Depreciation expense = $36600

1 January 2011 - 1 July 2021 = 10.5 years . Total depreciation = 10.5 * $36600= 384,300

Book value as on 1 July 2021 = Cost - Accumulated depreciation

Book value as on 1 July 2021 = 814000-384300

Book value as on 1 July 2021 = 429700

Net realizable value = Lower of future cash flow or fair value

Lower of 408000 or 273000

Net realizable value = 273000

Now, since the Book value is more than net realizable value, Asset is impaired

Impairment loss = $273,000 - $429,700

Impairment loss = $156,700

Thus, Sheffield should record $156,700 as an impairment loss on July 1, 2021.

there is no possible way mgk stands a chance with the greatest white rapper of all time. eminem killshots had more bars than rap devil and the reason mgk is doing all this is cause he not getting attention anymore til the release of rap devil and the disses he is putting on eminem. now rap devil was more fire than killshot so mgk might won the battle with rap devil but eminem won the war with killshot.