| Fact Pattern: "Blake Corporation has determined that one of its machines has experienced an impairment in value. However, the company expects to continue to use the asset for another 3 full years because no active market exists for this machine. Selected information on the impaired asset (on the date that impairment was determined to exist) is provided below." | |
|---|---|
| Original cost of the machine | $22,000 |
| Carrying amount of the machine | $20,000 |
| Undiscounted future cash flows expected to be generated by the machine | $15,000 |
| Fair value of the machine (determined by calculating the present value of the future cash flows expected to be generated by the machine) | $12,000 |