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University Of California, Los Angeles Operations And Supply Chain Management Assignment Help - The machine


Question - Robertson inc bought a machine on January 1 ,2002 for $ 400000. The machine had an expected life
of 20 years and was expected to have a salvage value of $ 40000.in july 1, 2012 the company review
the potential of the machine and determined that its undiscounted future net cash flows totaled
$200000 and its discounted future net cash flows totaled $ 140000. If no active market exists for the
machine and the company does not plan to dispose of it what should Robertson record as an
impairment loss on july 1 2012?

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